The shrinking of the Turkish economy is at full steam as the latest data shows it shrank by three percent in the last quarter of 2018.
The data was released by the Turkish Statistical Institute (TUIK) which further went on to say there was a 2.8 percent of growth that recorded for the whole of last year.
The TUIK report said the result of gross domestic product for the past year showed the value-added services sector increased by 5.6 percent, agriculture by 1.3 percent, industry by 1.1 percent but the growth of construction sector decreased by 1.9 percent.
The report, released amidst financial strains faced by most Turks, said the growth forecast was a 2.6 decrease in the last quarter and 2.5 growth rate for the entire year of 2018.
According to the production method, GDP increased by 19.1 percent in 2018 compared to the previous year and amounted to 3 trillion 700 billion 989 million Turkish Lira.
GDP per capita has increased to 9 000 632 dollars in 2018 from10 thousand 597 dollars in 2017.
“Recovery in the real sector will take time,” said the report.
Economy experts predicted the economic downturn will continue in the first quarter of 2019 and they said the recovery in the real sector will take time.
Banu Kivci Tokali, director for the Public Investment Research, said in an interview with a Turkish economy daily he predicts the growth rate will be expected to be limited in the first half of this year and the economic recovery is expected in the second half of 2019.
Muammer Komurcuoglu, an economist at IS Investment said the sharp fluctuations in financial markets, the sharp rise in inflation and the monetary tightening on the financial conditions have a negative impact on consumption and investment in the Turkish market.
Komurcuoğlu further said the economy is expected to continue with the contraction in the first half of this year, he said.
Despite the experts’ cautious comments, the Turkish Treasury and Finance Minister Berat Albayrak both said the worst of Turkey’s economic downturn is over “in spite of the most serious speculative attack in history, despite the period in which global growth started to slow down, a similar situation of 2001 and 2008 economic crises has not experienced, and the process was successfully overcome in a very short time,” Albayrak wrote on his Twitter account on Monday.
2018 son çeyrek büyümesi % -3 olarak piyasa beklentileri doğrultusunda gerçekleşmiştir. İç ve dış dengelenmeyi bir arada sağladığımız bu dönem, cari açık ve enflasyonda düşüş başlattık. İktisadi faaliyette en kötü geride kalmıştır. Büyümede en kötü beklentiler gerçekleşmemiştir.
— Berat Albayrak (@BeratAlbayrak) March 11, 2019