Risk indicators are on the rise for the Turkish economy, which relies heavily on the inflow of foreign capital to grow. Foreign investors are closely watching the situation and reviewing decisions.

Credit default swaps are a major indicator measuring country risks, denoting the insurance premium on money invested in a country’s government bonds. The higher the credit default swaps, the higher the country risk. According to economic sources such as Reuters and Bloomberg, Turkey’s credit default swaps reached 250 in October, the second highest among emerging economies after Brazil with 266. South Africa is third, almost neck and neck with Turkey, followed by Russia, whose risk premium has been on the decline, falling to 218 in October.

Turkey’s risk premium has fluctuated over the years. When the global financial crisis erupted in 2008, for instance, it shot up to 321, while falling to 167 in 2010, when economic growth gathered steam. With the recent decline in economic growth, the risk premium has climbed up again, reaching the current level of 250.

Another widely monitored risk indicator is the grade a country receives from credit rating agencies. Two of the top three agencies watched by investors around the world — Standard and Poor’s and Moody’s — cut Turkey’s sovereign credit rating to non-investment grades in July and September respectively, infuriating Ankara and leaving Fitch as the only major agency that keeps Turkey on investment grade.