Turkey's Economy to Contract In 2019, Longer Recession Ahead

Turkey’s economy is expected to contract in 2019 after a decade of strong growth, and economists are predicting a longer recession ahead after a recent bout of volatility in the lira, a Reuters poll showed on Friday. The Turkish economy contracted 3 percent in the fourth quarter of last year after a currency crisis devalued the lira by nearly 30 percent against the dollar, Reuters reported. It drove inflation to a 15-year high, severely limited companies’ ability to service foreign debt and multiplied bad loans in the banking sector. The economy will contract 0.3 percent this year, the median of a Reuters poll of 43 economists showed - well below the government’s sharply lowered forecasts of 2.3 percent growth. There was a wide range of estimates, from growth of 2.3 percent and a contraction of 5.0 percent. Turkey’s economy last contracted in 2009, by 4.7 percent. Read more

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