Turkish economy on the move again with surprising growth rate

The TURKISH ECONOMY grew by more than 5 percent year-on-year rate in the first quarter of 2017. According to data from the Turkish Statistical Institute (TURKSTAT), this performance surpassed the ones obtained in the other main emerging markets.

At the beginning of June, the World Bank raised its 2017 growth projection for Turkey to 3.5%, up 0.5% from the initial projections. Fitch Ratings had also revised Turkey’s growth forecast on June 19th 2017, from 2.3 percent to 4.7 percent for 2017 and from 1.3 percent to 4.1 percent for 2018. Fitch Ratings had also mentioned that the political environment was smoother after the referendum and this would support the investment environment and consumption until 2019 when next elections were due.

Fitch also included in its Global Economic Outlook report that global growth would increase from 2.5 percent in 2016 to 2.9 percent in 2017 and 3.1 percent in 2018 adding that the improvement in commodity prices and the positive progress in developed and emerging market economies were the motivating reasons behind the growth. Fitch also forecasted growth rates of 1.8 percent in 2017 and 2 percent in 2018 for developed countries and of 4.9 percent through 2018 for emerging ones.

Strong export volume and consumption were recorded to be most important factors behind the strong growth rate in first quarter, not to forget the fiscal stance of the government to boost economic activity

Source: Media (Edited)