Turkish Economy Will Be Back on Its Growth Track on Third Quarter
According to Daily Sabah’s news, experts assert that the Turkish economy will return to a trend of growth in the third quarter of 2019. They claim that the Turkish economy got out of technical recession by showing quarter-based growth. This basically means that even though the economy shrunk in the beginning of 2019, in comparison to the same quarter of 2018, there will be an actual growth from the second quarter of 2019 to the third one.
A Few Problematic Quarters
Turkish economy had a few economically challenging quarters in the beginning of 2019 but these are apparently about to change. The county’s construction sector was contracted by 10.9% in comparison to last year’s same time. Agricultural revenues were up by 2.5% but the industrial and service-related sectors suffered about 4% of fall in revenues each. These all lead to an almost zero growth in the second quarter of 2019. However, Banu Kıvcı Tokalı who is Halk Invest’s research director claims that the Turkish economy will gather its strength once more and grow in the third quarter of 2019.
Trading Values Show Positive Signs as Well
Turkey always had issue with a trade deficit due to the nature of its economy, but things are changing. Latest data from Daily Sabah shows that the trade deficit of the country was more than halved in 2019 April in comparison to the April of 2018. In fact, in 2019 the exports have risen by 4.6% while the imports have diminished by 15.1%. This is a huge change in the economic outlook of the country and if this policy is continued to be pursued in the upcoming years Turkish economy could in time be rid of its problematic trade deficit.
Reasons of the Contraction and a Brighter Future
Anadolu Agency finance analyst Haluk Bürümcekçi explained the downturn in the economy of Turkey in the first two quarters of 2019 by stating that the it was mainly caused by two reasons. Production-based propellant of the GDP was hampered by the lack of industrial output and construction work. Also, the consumer-based part of the GDP contracted because there was less domestic consumption and investment. However, he also notes that we have seen a record 9.4% contribution to the Turkish GPA from net foreign demand which means that the country is well on its way to be an attraction for foreign investors. It is thought that the Turkish economy will continue to recuperate in the following quarters of 2019 and that eventually with an increase of foreign investment in the country the economy will be back on its tracks in no time.
