All Countries and All Sectors

While Turkey became the focus at NATO of perhaps the worst rift in US-European relations in decades, back in Ankara and Washington the International Monetary Fund (IMF), the US Treasury and the Turkish government were doing a good deal of number crunching during the week. Up for analysis were the cost of a war and the price of economic reform.

With new figures out this week adding to a growing sense of market unease over Turkey’s economic performance, the government’s ability to deal with a range of tough domestic and international issues was also being put to the test.

New 2002 figures showed the UAE’s banking sector continuing to show robust results in drawing investment, despite uncertainty over Iraq. Meanwhile, UAE Central Bank officials began speculating on future monetary union between Gulf Co-operation Council (GCC) states.

With new figures out this week adding to a growing sense of market unease over Turkey’s economic performance, the government’s ability to deal with a range of tough domestic and international issues was also being put to the test.

Turkey’s diplomatic efforts for a peaceful resolution of the Iraqi crisis received widespread praise this week, though a meeting of regional foreign ministers in Istanbul had less impact on events than many in Ankara had hoped.

Turkey’s government launched a major diplomatic initiative during this week aimed at its southern, Middle Eastern neighbours ahead of a possible US-led invasion of Iraq.