Turkish Growth Slows to 1.9% in Q2

Big drop from 6.7% growth in Q1

Slowing sharply from 6.7% in the first three months of the year, the Turkish economy grew 1.9% in the second quarter, official figures showed on Sept. 10.

Turkey has been one of the strongest economies in the region in recent years, having grown 9.4% in 2004, 8.4% in 2005 and 6.9% in 2006 under IMF-backed recovery programs in the wake of two severe financial crises.

In 2007, growth slowed, however, to 4.6% and prospects have worsened this year amid global financial turmoil and political tensions at home where the ruling Justice and Development Party narrowly escaped being outlawed for anti-secular activities in July.

Since May, the Central Bank has hiked interest rates three times to 16.75% as inflation picked up to well above the government's target to exceed 11% in August.

Copyright Agence France-Presse, 2008

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish