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Turkey - Financial Services, Economy & Statistics

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Turkish central bank says economic recovery to be slow

Daren Butler - 24.11.2009

Turkey's central bank expects the recovery in economic activity to be slow, with lasting improvement in employment conditions seen taking a long time.

The Turkish economy went into a deep recession in the first half, shrinking 10.5%, and is expected to contract 6% for the year, with economic indicators yet to show significant signs of recovery.

Uncertainty in demand and low capacity utilisation are expected to continue limiting investment expenditure, the bank (www.tcmb.gov.tr) said in its twice-yearly Financial Stability Report.

Underlying inflation indicators are expected to remain low. Turkey’s annual consumer price inflation stood at a 40-year low of 5.08% in October, compared with an official year-end target of 7.5%.

Development in the country's current account deficit will depend on the rate of economic activity and energy prices, the bank said. Turkey imports the vast majority of its energy needs.

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