Turkey’s Leading Indicators Imply Economic Recovery in Progress: European Bank for Reconstruction and Development

The European Bank for Reconstruction and Development (EBRD) expects Turkey’s gross domestic product (GDP) to contract 3.5% in 2020. GDP in the country expanded 4.4% year-on-year (YoY) in the first three months of 2020 (January to March 2020), and shrank 9.9% YoY in April to June 2020, according to reports.

Roger Kelly, Regional Chief Economist at EBRD, noted that Turkey has also been impacted by the on-going pandemic, having experienced a sharp drop in exports, led by a fall in external demand, citing these as key reasons for the predicted contraction in 2020. Kelly also warned of other economic impacts of the outbreak, such as currency risks, geographical risks, and challenges in maintaining the country’s m...