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Title: Turkish Economy bursts: Growth down from 9% to 2%, Inflation up from 4% to 8,3%! Post by: JohnsonE on November 18, 2011, 06:01:09 PM Turkish Economy bursts : Growth down from 9% to 2% next year, Inflation up from 4% to 8,3%!
(http://inlinethumb62.webshots.com/48765/2205028220105195353S500x500Q85.jpg) The largely expected "Burst" of Turkish Economy (See f.ex. relevant publications at Eurofora's forum earlier) apparently is starting : - Among various converging Negative Facts on Turkey's recent Economic trends, Its Growth is threatened to be Cut down to less than -400% (i.e. 4 times less !) from what it was before, while, at the same time, its Inflation rate is climbing up to +200% (i.e. 2 times more) higher than previously : - Indeed, "Turkey’s economy is Slowing, after expanding + 8.8 % in the second quarter from a year earlier (2010). The (Turkish) government expects growth of + 7.5 %this year (2011), but only "+ 4 % in 2012". However. "the IMF's forecast for 2012 is (just)j + 2,5%".. (i.e. only a quarter of what it was before).... "Turkey’s current-account Deficit, equal to about 10 % of GDP, ..has Dented investor confidence", noted Bloomberg News. +=> Inflation in Turkey, after a short period of 4%, had been expected to augment up to +5,5% this year according to Turkish Governments' warnings, but, in fact, it got even Worse on September : + 6,2%, and aggravated on October with more than +7,7%. while, finally, the Turkish Central Bank just anounced that 2011's "Inflation would end the year at about + 8.3 %" (i.e. almost the DOUBLE of what it was before !!..).. ---------------------------------------------- + Moreover,"Turkish bond yields have climbed" (rising from 8% on September, and from 9,14% on October) to +10.62 %on November, i.e. +351 basis points this year", reaching "the Highest Rate among emerging markets globally, data compiled by Bloomberg show". ++ Meanwhile, the Turkish "lira has Declined -14 % against the dollar this year, the biggest Slump in emerging markets after the South African rand". "The lira fell to a record Low of 1.9096 per dollar on October". "The Currency’s Decline has boosted Imported Costs, at the same time that the government raised Taxes on cars, phones, alcohol and tobacco this month", Bloomberg noted. Diminishing Foreign Currency Reserves at Turkey's central Bank, fell recently - 10%, because the bank "used" it "selling dollars to stem the (Turkish) lira’s Decline" (!), Thus, f.ex. "It intervened directly in markets on Octobr 2011 for the first time since 2006, hours after selling $750 million of dollars in an auction"... Thus, f.ex., "Reserves stood at $ 85 billion on Oct. 7, according to central bank data, equivalent to Tukey's short-term external Debt as of June", i.e.of only one Month !... |