“Turkey’s economic situation continues to offer a stark contrast, with resilient growth on the one hand and soaring inflation, dwindling foreign exchange reserves and a devaluation of the lira on the other. In short, the reed is bending but not breaking,” BNP Paribas economists note.
“In a previous edition, at the beginning of the year, we reported on the peculiar economic situation in Turkey. It is still valid. Growth is still resisting. It was plus 1.2% in the first quarter compared to the previous quarter,” the statement said, adding : “at the same time, inflation continued to accelerate, 5.1% per month on average between February and June, peaking at 78.6% year-on-year”.
“Other estimates even point to triple-digit inflation,” the economists warn.
“At the same time, foreign exchange reserves have fallen by around $28bn since the end of November due to rising energy bills and portfolio investment outflows. The pound has depreciated by around 20% against a euro-dollar basket.”
Petros Kranias
Source: Capital
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