Erdogan’s Pre-Election Splurge Helps Fuel Turkey’s Economy

Turkey’s battered economy is set to leave recession later this month thanks to a politically-driven surge in bank lending and public spending — but analysts warn that key vulnerabilities remain unaddressed and the recovery is likely to be shortlived, the Financial Times reported. Growth figures due to be published at the end of May are widely expected to show that the country emerged from its first contraction in a decade in the first quarter of 2019. The bounce has been mainly driven by President Recep Tayyip Erdogan’s bid to try to limit the economic pain for voters in the run-up to elections held in March, via a government spending splurge and a lending spree by state-owned banks. But as the political stimulus push fades, analysts are forecasting that a “double-dip” recession will take hold in the coming months. Read more