'Tremendous momentum' in store for Turkey's economy - President Erdogan

Turkish economic signs positive

All signs are good for Turkey's economy to make a swift recovery from covid-19 shockwaves, says the country's president.

President Recep Tayyip Erdogan told crowds gathered in Kars during the opening of a dam that recovery signals were good. 

"We've faced the pandemic, in which even developed countries have been left helpless, both with our health infrastructure, our food and cleaning supply chain and exemplary management in terms of public safety," Erdogan said.  “Recovery signals are quite strong in the economy." 

He added that during the second half of 2020, Turkey would see a "tremendous momentum in the economy."

Earlier this month, the World Bank reported that it expected the Turkish economy to bounce back to 5% growth in 2021, after a 3.8% contraction this year.

In the latest issue of Global Economic Prospects report, the organisation cited domestic demand in Turkey's recovery. “The economy is expected to return to growth in 2021, on the back of gradual improvement in domestic demand,” the bank said on June 8.

This year's contraction reflected a fall in investment, a lower level of exports due to weak external demand, and restrictive covid-related measures.

Data shows that the Turkish economy grew 4.5% year-on-year in the first quarter of 2020, slightly less than the predicted 5.2% growth, but a strong result bolstered by household consumption and investment, as well as government consumption.

Rabobank strategist Piotr Matys, commenting on the strong first-quarter performance, said Turkey had an opportunity to grow in a post-covid world.

The country could attract foreign companies looking to relocate out of China and closer to Europe, as a way to diversify their supplies.

"Essentially, Turkey could become one of the biggest manufacturing hubs," Matys said.


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