Skip to main content

Turkey’s recession becomes official

The shrinking Turkish economy needs external funds to start growing again, but luring foreign investors back is a tall task that Turkey is unlikely to accomplish in the short run.
RTS1Z2HR.jpg
Read in 

The Turkish economy entered turbulence in the second half of the year amid a sharp increase in foreign exchange prices, which, in turn, fueled inflation. Though the president maintained there was no crisis, successive indicators spoke of a rapid downturn. Finally, the growth data for the third quarter — released Dec. 10 by the Turkish Statistical Institute (TUIK) — offered a telling picture of what is going on.

According to TUIK, Turkey’s gross domestic product (GDP) grew only 1.6% in the third quarter, down from 5.3% in the second quarter and 7.2% in the first one — a sharp decline that matches the definition of recession. For Turkey’s economy, a growth rate of 5% to 6% is considered “the normal.” Thus, the 1.6% rate in the third quarter indicates that the economy is now “officially” in recession.

Access the Middle East news and analysis you can trust

Join our community of Middle East readers to experience all of Al-Monitor, including 24/7 news, analyses, memos, reports and newsletters.

Subscribe

Only $100 per year.