Abstract:

The sustainability of growth, which is an important role in the macro economy, has become frequently seen in the economy in recent period. Growth represents a real output increase with the most general definition, while sustainable growth is that it can be continued without instability being created. High inflation rates, a vulnerable and crisis-open economy, uncertainty are some of the factors that can prevent sustainable growth. However, there is a need for funding to make the production and therefore investments the basis of growth in the present conditions where there is a relationship between the real sector and the financial sector is known to exist. While domestic or external resources are used to finance growth, it is not expected that external funding will have a positive impact on growth, especially if external funding is made in such a way that does not create a new increase in production (portfolio investment or direct investment). Furthermore, portfolio investments tend to quickly leave the country in a negative situation that can occur within the country, which means they are at risk for sustainability. For this reason, it is preferable to provide funding with internal resources. However, the low savings rates in Turkey, the shift of existing savings to productive areas and the difficulties in the withdrawal into the financial system and registration exclusion factors prevent internal resources from occurring at the desired levels. This aim is to work on sustainable growth and financing and the current situation in Turkey is assessed.