Turkey: On the razor's edge – BNP Paribas
“Turkey's economic situation continues to offer a stark contrast, with resilient growth on one hand and soaring inflation, dwindling foreign exchange reserves and a depreciating lira on the other. In short, the reed bends but does not break,” economists at BNP Paribas note.
Additional quotes
“In a previous edition, at the beginning of the year, we mentioned the peculiar economic situation in Turkey. It is still the case. Growth still resists. It was plus 1.2% in the first quarter compared to the previous quarter.”
“At the same time, inflation has continued to accelerate, 5.1% per month on average between February and June, to reach a peak of 78.6% YoY.”
“Other estimates even mention a triple digit inflation rate. “
“In parallel, foreign reserves have decreased by approximately 28 billion dollars since late November due to the rising energy bills and portfolio investments outflows.
“The lira has depreciated by approximately 20% against a euro-dollar basket.”
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
