Turkey: Restore restraint

The economy, which had slowed down earlier in the year as a result of monetary tightening in 2006 and political uncertainties in the spring, gained momentum after the summer elections. In the absence of shocks, growth should settle at around 6% in 2008 and 2009.
Progress with enhancing the resilience and performance of the economy is at risk from a loss of competitiveness provoked by booming capital inflows. In this context the government is encouraged to restore fiscal restraint, which would help the central bank to continue reducing interest rates, and to increase the flexibility of product and labour markets to help the economy to cope with strong appreciation.

©OECD Observer No. 264/265, December/January 2008

OECD Economic Outlook No. 82, December 2007
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Economic data

GDP growth: -9.8% Q2/Q1 2020 2020
Consumer price inflation: 1.3% Sep 2020 annual
Trade (G20): -17.7% exp, -16.7% imp, Q2/Q1 2020
Unemployment: 7.3% Sep 2020
Last update: 10 Nov 2020

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