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Turkey lowers economic targets

Following a decline in industrial output, Turkey cuts its growth forecast to 3.3% in 2014 and 4% in 2015, while raising the year-end inflation estimate from 5.3% to 9.4%.
Traders work during the afternoon session at the Stock Exchange in Istanbul November 22, 2012. REUTERS/Osman Orsal (TURKEY - Tags: BUSINESS) - RTR3AQKN

The Turkish government has revised its year-end economic targets amid regional turmoil, rising inflation, a weakening currency and shrinking industrial output. The revisions were announced Oct. 8 as part of Ankara’s new medium-term program, its economic road map for 2015-17. The growth forecast was slashed to 3.3% from 4% for 2014, and to 4% from 5% for 2015.

Efforts to rein in inflation have proven a huge disappointment. Accordingly, the year-end estimate was raised to 9.4% from the earlier 5.3% projection, a level Turkey could now hope to achieve only in 2016, if everything goes as planned.

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