Turkey: Economy Slows Down

Turkey’s gross domestic product (GDP) grew at an annualized rate of 2.5% in the April-June 2024 period, slowing from the growth recorded in the first quarter of the year, which reached 5.7%, and ended up below analysts’ expectations that forecast growth of 3.2 percent.

Turkey’s GDP grew by 4.5% last year, and the International Monetary Fund (IMF) recently revised Turkey’s overall economic growth estimate from 3.1% to 3.6% in 2024.

Turkey’s economic slowdown in the second quarter was mainly due to a decline in domestic consumption after a sharp rise in January-March following expectations of further rapid increases in consumer prices. “Instead,” said Turkish economist Haluk Burumcekci, “the high prime rate, which Turkey’s central bank has kept at 50% since April, has halted spending by the country’s families.”