Macroeconomic Balances and Geopolitical Risks: Determinants of Domestic Savings in Türkiye

Saving is a critical concept not only from an economic perspective but also from religious and intellectual standpoints, serving as a fundamental pillar for the sustainability of individual and social welfare. This study aims to empirically examine the effects of economic growth on the level of domestic savings in Turkey over the period 1985–2023. The analysis incorporates key macroeconomic variables such as the current account balance, inflation, exchange rate, and geopolitical risks as control factors. The empirical results reveal that economic growth and inflation positively affect savings, whereas current account deficits and geopolitical risks have adverse impacts. Although the exchange rate shows a negative effect, it is not statistically significant. The study’s originality lies in addressing the largely underexplored influence of geopolitical risks on savings in the literature. The findings indicate that economic and political stability constitute essential prerequisites for increasing savings. The results emphasize the importance of policymakers developing macroeconomic policies that promote sustainable economic growth, control inflationary pressures, and effectively manage external and geopolitical risks. Furthermore, implementing reforms aimed at resolving structural current account deficits can be considered a strategic factor contributing to the sustainable increase of domestic savings rates.