Özet:

Purpose: In the study, it is aimed to determine the effect of the budget deficit and current account deficit on economic growth in the Turkish economy during the COVID-19 pandemic process, which negatively affects today's world and every aspect of life. Design/Methodology: The effect of the shocks observed in the budget deficit and the current account deficit on economic growth were determined by the Impact-Response analysis and the Variance Decomposition analysis, which used to describe this effect as a percentage. Findings: According to the analysis results, although the effect of current account deficit and budget deficit shocks on growth is positive, the effect of these shocks is very low, and a standard deviation shock in growth mostly originated from budget deficits. Also, to a shock which was observed in budget deficits, the reaction of the current account deficit was positive in the early periods, it has been negative in the recent periods. This situation shows that the Twin Deficit Hypothesis, which is based on the fact that the deficits observed in the budget deficits triggered the current account deficit, is valid during the research periods. Limitations: The research is limited to the use of the Turkish economy and the 2018-M1:2021-M1 time interval. Originality/Value: It is important to determine the impact of the twin deficit problem on the Turkish economy during the COVID-19 pandemic, which still has its effect today, in terms of policy recommendations and interpretation of the problems for the current situation. In addition, it is thought that this study will contribute to the researches made for the Turkish economy during the pandemic process and that appropriate policy inferences can be made in line with the consensus.

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