IPANEWS

Concern as Turkey’s economic confidence drops

Turkey’s economic confidence index fell to 77.5 in May from 84.7 in the previous month.

The economic confidence weakened as the index in consumer, real sector (manufacturing industry), service sector, retail trade, and construction declined.

This is according to the Turkish Statistical Institute statement which mentioned the lowest index recorded since last December.

The fact that when the economic confidence index is higher than 100 indicates the optimism of the general economic situation, and if the number is lower than that, shows pessimism about the general economic situation, TUIK said in its analysis.

The economic confidence index which started at 105.2 in 2018 followed a downward trend during the year and regressed to 75.2 in October.

TUIK indicates that this index is a leading indicator since it provides earlier information regarding economic growth compared to other economic indicators.

Economic Optimism Index in Turkey averaged 99.34 Index points from 2007 until 2019, reaching an all-time high of 114.90 Index points in January of 2011. A record low of 60.80 Index points was recorded in November of 2008, Trade-economics reported.

The lira lost more than 40 percent of its values against the US dollar since the tension erupted between Washington and Ankara last August over US Pastor Andrew Brunson.

The two countries still have a major disagreement as Ankara insists on purchasing  Russian S-400 Missile System but the  US threatens Turkey with sanctions.

Turkish currency weakened 0.3 percent to 6.04 per dollar at 10:30 a.m. local time in Istanbul on Wednesday.

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