Tuesday 11, September 2018 by Kudakwashe

Turkish economic growth dips as lira crisis darkens outlook

 

The economy is facing challenges after a sharp decline in the lira, triggered partly by concerns about President Erdogan’s influence over monetary policy and on-going spat with the US.

Turkish economic growth slowed to 5.2 per cent in Q2 2018, in what officials described as an ‘economic rebalancing’ before an expected second-half slowdown as Turkey deals with a deepening currency crisis, reported Reuters.

Berat Albayrak, Turkish finance minister, said that growth was driven by domestic demand despite a moderate slowdown in consumption and investments in Q2 but the slowdown will become more visible from Q3 2018.

Data from the Turkish Statistical Institute showed that Q2 2018 gross domestic product (GDP) expanded a seasonally and calendar adjusted 0.9 per cent from the previous quarter.

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