September bought about a new financial report for Turkey in which the IMF (International Monetary Fund) recognised current positive growth in the overall economy and opportunities to strengthen credibility which resulted in them concluding that they did not expect Turkey to hit a recession in 2019.
Looking forward to the new Economic programme put forward by Turkey´s ruling party, which not only understands the current vulnerabilities, but implements ideas in which to combat them, Turkey now targets an account defict to GDP ratio of 3.3% this year.
The IMF´s statement highlighted that there have been many factors that have led to their conclusion and to the prediction of a 0.25% rise in growth and these include ´expansionary fiscal policy, rapid state bank credit provision, a strong contribution of net exports and favourable market sentiment´. One big highlight is that the Lira recovered extremely well from its dramatic decline in 2018, mainly due to ´import compression, a strong tourism season, and geopolitical developments´.
Lower inflation has also come about over the last few months as a direct result of the positivity and this has led to the Central Bank of the Republic of Turkey recently cutting policy rates. The hope of course is now this continues, which could lead to inflation dropping into single figures.
