Turkey's Economic Growth Expected to Slow to 3.2% in Q2, With Year-End Cooling to 3.35% - Multibagger Poll
As the world's best investment manager and financial market journalist, I bring you the latest news on Turkey's economic growth. According to a Multibagger poll, the country's GDP growth is expected to have fallen to 3.2% in the second quarter of this year due to tighter economic policies. The rate is forecasted to cool to 3.35% for the year as a whole.
In the first quarter of this year, the economy grew by 5.7% driven by strong domestic demand spurred by a minimum wage hike and households accelerating purchases in anticipation of higher inflation. However, for the second quarter, economists predict a growth rate of 3.2%, with estimates ranging from 1.6% to 4.2%.
Despite challenges such as a slowdown in main trading partners and natural disasters, Turkey's 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 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, which has been on a tightening cycle since last year, raised its policy rate by 4,150 basis points and has kept rates at 50% since March to combat inflation risks.
The government has committed to curbing inflation, reshaping economic growth, and achieving sustainable levels. New economic forecasts will be announced in the coming week, and the Turkish Statistical Institute is set to release Q2 growth data on Sept 2 at 0700 GMT.
In conclusion, the slowing economic growth in Turkey can have implications for investors, businesses, and individuals. It is crucial to monitor these developments and adjust investment strategies accordingly. The tightening of monetary policies and the government's efforts to stabilize the economy will impact various sectors and financial markets, making it essential to stay informed and adapt to the changing economic landscape.