The Turkish economy grew in the third quarter of this year, only slightly. The gross domestic product (GDP) increased, according to data of the statistics office in Ankara in comparison to the same period last year by 1.6 percent.
In the second quarter, the economy had grown in comparison to the previous year by 5.2 percent. In the first three months of this year, the GDP grew compared with the same period last year, 7.4 percent.
The Turkey is now struggling with high Inflation: In October, it had risen for the first Time in 15 years to more than 25 percent. Although the inflation rate fell slightly, however, it is still at 21.6 percent.
the Background of the dramatic fall in the price of the Turkish Lira. The currency has lost within a year, more than 40 percent of their value in relation to the Euro. In order to stabilize the Lira and the tightening sharply to curb Inflation, has increased the Turkish Central Bank’s last interest rates for lending dramatically. The impacted banks and corporations; many young, well-educated people leave the country. Finally, the national currency recovered slightly and is at around 5,30 Lira for one US Dollar.
Lira-deterioration, Inflation, and co. Five diseases of the Turkish economy
A now-resolved political disputes with the United States a in Turkey detained a U.S. Pastor was fired, the crash of the currency. Turkey is struggling with a high current account deficit – they imported more Goods than it performs. German exports to Turkey dropped sharply in September compared to the previous year to 33 percent.
In September, the Turkish government has aligned its growth forecast for the current year: Minister of Finance, Berat Albayrak is expecting in 2018 with a growth of 3.8 per cent. Previously, the government aspired to a growth of 5.5 percent.