Turkey’s economy has contracted nearly 12% in the second quarter due to the coronavirus lockdown, a Reuters poll showed on Friday.
The figure indicates the worst year-over-year economic performance for the country in more than a decade.
A Reuters poll of 14 economists produced a median estimate for an 11.8% contraction in the gross domestic product (GDP).
Estimates ranged from declines of 7.1% to 13.1%.
The country’s economy grew 4.5% year-on-year in the first quarter of 2020, just before the pandemic brought on a downturn in March.
The second quarter saw a near stand-still economy as Ankara shut schools and some businesses, closed borders, and adopted weekend stay-home orders. Some factories halted production until June.
The second-quarter contraction, coupled with a severe hit to the vital tourism sector, lead to forecasts expecting the economy to shrink for the full year.
Turkey’s economy last contracted annually during the global recession in 2009, by 4.7%.
GDP growth had since averaged more than 5% propelled by cheap foreign funding and a construction boom until a currency crisis in 2018 prompted another recession.
The central bank – which cut rates aggressively since mid-2019 – has held policy steady the last few months as the lira dropped to record lows, threatening more significant problems for the economy.
The Turkish Statistical Institute will release the second quarter’s GDP data at 0700 GMT on Aug 31.
The post Turkey’s economy contracted 11.8% in second-quarter: Reuters appeared first on Turkish Minute.
from Turkish Minute https://www.turkishminute.com/2020/08/28/turkeys-economy-contracted-11-8-in-second-quarter-reuters/
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