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Turkey set to report pre-COVID-19 economic growth above 2020 target

May 25, 2020
in Europe, World News
0
Turkey imposes nationwide lockdown during Eid al-Fitr to contain pandemic

ISTANBUL, TURKEY - MARCH 14: People walk around on the Istiklal Street as a tramway is on its route on March 14, 2018 in Istanbul, Turkey. Onur Coban / Anadolu Agency

Turkey is set to report economic growth for the first quarter in excess of a year-end goal, reflecting a strong recovery prior to the outbreak of the coronavirus.

The economy may have expanded by an annual 5.4 percent in the January to March period, according to a Reuters poll of 14 economists. Forecasts ranged from 4.4 percent to 6.4 percent growth, the survey showed. The government’s growth goal for the year stands at 5 percent.

Turkey’s central bank has slashed interest rates to single digits from 24 percent last July and the government has embarked on a lending splurge through state-run banks. That has helped the country reverse three quarters of negative annual economic growth that extended through June 2019.

Reuters said GDP growth for 2020 was forecast at a negative 0.75 percent, reflecting an expected sharp downturn caused by COVID-19. Turkey reported its first case of the virus on March 11. Estimates ranged between a contraction of 5.5 percent and growth of 0.9 percent, it said.

The Turkish Statistical Institute is due to report first quarter economic growth data on Friday.

Ahval

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