In an assessment of Turkey’s growth data, an expert at Capital Economics stated that the policy tightening by the Central Bank of the Republic of Turkey (TCMB) was helping the economy rebalance.
The same experts, in a note, mentioned that the periodical contractions in the Turkish economy during the second and third quarters indicated that the country had entered a technical recession after TCMB raised interest rates dramatically to 50% between last year and early 2024.
According to data released today by the Turkish Statistical Institute (TÜİK), the seasonally and calendar-adjusted GDP chain volume index decreased by 0.2% in the second and third quarters compared to the previous quarter.
“Turkey has entered a technical recession”
He emphasized that the contraction in the second quarter, along with the revised forecasts, indicated that Turkey had entered a technical recession following a sharp increase in interest rates by the Central Bank from last year to the beginning of 2024. He added, “The tightening of policies by the Central Bank is helping the economy rebalance.”
He also mentioned that policymakers might now consider lowering interest rates. In October, the Consumer Price Index (CPI) had increased by 2.88%. (ekonomim)
TAGS #assessment #Turkey #growth #data #policy #tightening #Central #Bank #TCMB #economy #rebalance
