By the end of 2014, Turkey will undergo two elections. Elections are always a push for public finance. However, Turkey cannot afford to have a deficit this year. Turkey is trying to decrease its current balance deficit, which has been too high for several years. Therefore, we cannot create a second element of risk. But, how did we come to this day? Turkey was influenced by the global crisis at the beginning of 2009 and suffered 4.7 per cent contraction. However, with the capital flow coming from outside Turkey, internal loans and increased demand during the years of 2010 and 2011, an extremely high real growth was experienced for two years (around 9 percent) and current balance deficit/GDP ratio bounced to the level of 10 percent. The current deficit could have been controlled either by devaluating TL or contracting the real growth. Since there was a crisis in Europe, the export market in Turkey tried to control current deficit by curbing the loan which had increased by 40 percent and reducing the growth. But when the real growth, projected to be 3 percent for the year 2012, remained at 2.2 percent, the growth rate planned as 4 percent for 2013. However, with the perception that US Federal Reserve would change policy and there would be a global increase in interest rate, the TL was devaluated by approximately 10 percent and the interest rates went up. In December 2013, there was friction within the governing party and this disturbed the economy. The devaluation of TL rose to 30 percent. In this situation, Central Bank keenly increased the interest rates and prevented the increase of the exchange rates but the inflation went above the value of 9 percent with the impact of increase in exchange rates. Nevertheless, the economy achieved the projected 4 percent growth in 2013. Interestingly, IMF and World Bank were expecting the real growth of Turkey to remain within the range of 2.3-2.4. However, people closely familiar with the country pointed out that the Government can ensure real growth at the level of 3.5 percent, if not the targeted 4 percent, because the devaluation of TL was increasing inflation but also inciting exports. The data from the first six months of 2014 indicates that it is possible to achieve a 4 percent growth, as projected, in the year 2014. The most critical data to observe the economic course in Turkey are current deficit, industrial production and public sector budget deficit. At the time of writing this review, the current balance deficit reduced more than it was anticipated and as opposed to the deficit of 32.3 billion dollars between January-May in 2013, the deficit in the first five months of 2014 was just 19.8 billion dollars. While the imports reduced by 5.4 percent in the first five months, the exports, within the same period, increased by 8 percent. The current deficit was shrinking. When we look at the budget deficit, we see that the budget, having a surplus of 3.1 billion TL in the first half of the previous year, had a deficit of 3.4 billion dollars by June, within the first six months. That is, there has been a deterioration of 6.5 billion TL in total, in the first six months. Non-interest surplus figures, in comparison with the previous year, receded to 23.1 billion from 26.4 billion TL. And the total non-interest expenditure increased nominally by 13.9 percent and 7.5 percent in real terms in the first half. Interest expenditures increased by 13.6 percent in nominal and 4.3 percent in real terms. However, we cannot speak of an excessive deviation from the budget target. As far as we are concerned, the most significant data are the developments in the industrial production. While the industrial production increased by 1.5 percent in May in comparison with the same month of the previous year, this rate in manufacturing industry remained just at 6 per thousand. These rates are the lowest industrial growth rates in the last seven months. This indicates that the pace of industrial production is slowing down. Undoubtedly, the fluctuations pertaining to a month cannot be regarded as the indication of a general trend. However, the industrial production index revised by TUIK (Turkish Statistical Institute) according to the seasonal fluctuations and holidays indicates a loss of pace in industrial production. Revised industrial production index decreased by 1 percent in May when compared to the previous year. In addition to this decrease, the industrial production is 0.8 percent lower than the figures of January. And this indicates a 2.2 percent of downsizing pace on a yearly basis. This loss of pace have been making itself apparent for a long time in the data of capacity ratio. So what can we deduce from looking at the aforementioned data? The course of the economy in 2014, too, takes a similar path that of year 2013, which means that Turkey will experience a 3.5-4 percent growth this year. Eventually, IMF and World Bank, too, changed their forecasts for Turkey to 3.5 percent growth. However, the slowdown in the USA and onset of setbacks in the European Union are not good. And the risky environments caused by Russia in Ukraine; Isis in Syria and Iraq; and Israel in Palestine constitute an increasing risk in the Middle East and Eastern Europe! Nevertheless, the fact that FED in the US acts slowly on increasing the interest rates is a positive situation for us. In conclusion, 2014 will be similar to 2013!