Turkey's Economic Growth Slows to 3.2% in Q2, Expected to Cool to 3.35% for the Year - Multibagger Poll
In the latest report, Turkey's economic growth is projected to have dropped to 3.2% in the second quarter of this year due to tighter economic policies. Analysts predict that the rate will continue to cool to 3.35% for the year as a whole.
The first quarter of this year saw a growth rate of 5.7%, driven by strong domestic demand fueled by a minimum wage increase and increased consumer spending. However, for the second quarter, experts estimate a GDP growth of 3.2%, with forecasts ranging from 1.6% to 4.2%.
Despite a slowdown in trading partners and natural disasters, the economy grew by 4.5% in 2023 and 3.9% in the second quarter of that year. Economists anticipate that tight monetary policies and fiscal measures will continue to dampen domestic demand throughout the rest of the year.
Looking ahead to 2024, GDP growth is expected to be around 3.35% based on the median estimate in the Multibagger poll. The central bank has been proactive in addressing inflation risks by raising its policy rate and maintaining it at 50% since March.
The government is taking steps to cool inflation, reshape economic growth, and achieve sustainable levels. New economic forecasts are expected to be announced in the coming week, while the Turkish Statistical Institute will release Q2 growth data on Sept 2.
In conclusion, the slowing economic growth in Turkey reflects the impact of tighter economic policies and external factors. Investors and individuals should stay informed about these developments as they can have implications for their financial decisions and overall economic outlook.