Turkey’s economy up by 21.7% in Q2

Web DeskWeb Editor

01st Sep, 2021. 07:43 pm

ISTANBUL: Turkey’s economy witnessed a 21.7 per cent growth in April-June this year as the country is recovering from the Covid-19 pandemic, but double-digit inflation remains a concern, official data showed on Wednesday.

The gross domestic product (GDP) rebounded sharply in the second quarter, compared with the previous steep fall caused by the global health crisis, the Turkish Statistical Office said.

The high GDP output is “mainly due to factors such as the rollover effect on industrial production and credit expansion, as well as the effect from the bad base in the same period last year,” Enver Erkan, chief economist at Istanbul’s Tera Securities, told Xinhua.

“Despite the tight monetary policy and macroprudential measures, domestic demand did not slow down significantly, while the contribution of exports was positive due to the recovery in foreign markets,” he remarked.

Rating agency Fitch recently revised up its forecast for Turkey’s 2021 growth after some favorable data on industrial production, manufacturing consumer confidence as well as exports.

It expects the country’s economy to expand by 7.9 per cent this year, up from its previous estimate of 6.3 per cent in June. The Turkish GDP gained 1.8 per cent in 2020.

However, the high inflation remains an outstanding issue in the country.

August’s inflation data is set to be announced on Friday and expected to be close to the two-year high of 18.95 per cent reported in July, driven by the Turkish lira slump.

Hikes in prices posed a burden for many Turkish people. Gas prices soared by around 20 per cent in July, marking the seventh increase since January. Electricity prices have gone up by 100 per cent in the last two years, causing widespread distress.  

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