Key economic data suggests Turkey turning corner
Slowing inflation and a smaller-than-expected contraction in the economy could mean Turkey is emerging from a year-long downturn.
ISTANBUL — Better-than-expected economic data this week signaled Turkey may be turning the page on a painful downturn that has left millions out of work and sparked a voter backlash against President Recep Tayyip Erdogan’s ruling party in nationwide municipal elections earlier this year.
On Tuesday, official data showed inflation had reached 15% in August — its lowest level in more than a year, beating a forecast of 15.5% in a Reuters survey. The easing was helped by declines in the prices of transportation, clothing and food, according to the state statistics agency.
Data released Monday revealed gross domestic product grew 1.2% in the second quarter, compared with the previous three months, while a Bloomberg poll had estimated just a 0.4% increase. Economic activity was helped by government spending and exports, the latter jumping 8% in that period, the agency said.
In year-on-year terms, the economy shrank 1.5% in the second quarter but should begin expanding again in the second half of the year from last year’s low base when output was especially weak, economists said. The news has eased concerns the $750 billion economy could suffer a “double-dip recession” with another contraction after a brief recession earlier this year.
