Türkiye’s economic growth slowed down
reported by %20%0A
As of June 2023, the central bank has increased its key interest rate from 8.5% to 50% to reduce demand and subsequently inflation. Inflation reached 75 percent in May, but fell below 62 percent in July and is expected to continue to decline.
Finance Minister Mehmet Simsek said leading indicators show growth will continue to stabilize in the third quarter and the economy is expected to have a balanced growth mix this year. He tweeted that growth has started to stabilize, the current account deficit and insurance premiums have narrowed, while foreign exchange flows have accelerated, reserves have improved and we are entering the process of deflation.
According to the report of the Turkish Statistics Center, the economy in the construction sector is 6.5%, real estate, agriculture, forestry and fishing activities are 3.7%, and information and communication is 3.4%. percent has grown and the added value in other service activities has increased by 7.4 percent.
However, growth slowed to 5.3% from 5.7% in the first quarter, when strong domestic demand was boosted by a rise in the minimum wage and households matched expectations for higher inflation. They went ahead with their purchases.
Capital Economics said in a note that the net result is that, although Turkey’s economy is slowing, it has not weakened as much as previously thought. However, rebalancing is still a bumpy road.
Last year’s annual growth has been revised down to 5.1 percent from an initial 4.5 percent, despite the slowdown in major trading partners and the devastating earthquake in February.
Early on Monday, data showed that the Purchasing Managers’ Index for Turkish manufacturing rose to 47.8 from 47.2 in July, according to a survey by the Istanbul Chamber of Industry and S&P Global. is, which is still below the 50-point level, keeping growth in activity separate from contraction.
