Turkey’s economy is slowing down
2022.11.30 07:44
Turkey’s economy is slowing down
Budrigannews.com – According to official data released on Wednesday, Turkey’s economy expanded by 3.9% in the third quarter compared to the same period a year earlier.
Growth slowed from the previous quarter as a global slowdown hampered exports, but the tourism industry remained robust.
According to data from the Turkish Statistical Institute, GDP decreased by 0.1% seasonally and calendar-adjusted from the previous quarter. This was the first contraction since the height of the COVID-19 pandemic in the second quarter of 2020.
After a strong first half of the year, economists anticipate full-year growth of 5%, in line with forecasts, according to the most recent Reuters poll.
In the fourth quarter, economists anticipate a further slowdown in growth.
Haluk Burumcekci of Burumcekci Consulting stated, “It seems to be still possible to attain the 5% growth target if there is no quarterly contraction of more than 0.5 percent in Q4.”
The standpoint for 2023 remaining parts questionable.If the opposition wins a national election in June, President Tayyip Erdogan’s economic policies could be dramatically reversed.
In the third quarter, private consumption remained strong.
Slowing down As a result of a downward trend in foreign demand, particularly among Turkey’s largest trade partners, analysts predicted that growth would slow in the second half.
Between August and November, Turkey’s central bank began an easing cycle, lowering its policy rate by 500 basis points to 9% to combat the slowdown.
Over the past 14 months, Erdogan’s economic plan put growth and exports first.
The lira has lost another 29% against the dollar this year as a result of Erdogan’s demand for central bank interest rate cuts last year, pushing inflation to a 24-year high of over 85% in October.
Last year, Turkey’s economy returned firmly from the Coronavirus pandemic and developed 11.4%, its most noteworthy rate in 10 years. Data from Wednesday showed that annual growth in the second quarter of 2022 was revised down from 7.6% to 7.7%.
