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The Turkish lira is falling and Turkey GDP growth is slowing in the second quarter

2018-09-10 01:32 pm | Resource: News | No Views : 365

The Turkish lira and bonds have fallen, leading to a recent rally supported by bets on an imminent rate hike, with the emerging market index falling sharply in a week.

The currency fell for the first time in four days against the dollar as data showed GDP expansion at an annual rate of 5.2% in the second quarter, slowing from 7.3% in the previous three months. The lira lost about 40 percent of its value this year.

Turkey's GDP growth slows in the second quarter

Turkey's economic growth fell in the second quarter after stabilizing in the previous quarter, data from the Turkish Statistical Institute showed on Monday.
  • GDP grew 5.2 percent year-on-year in the June quarter, slower than the 7.3 percent expansion seen in the first quarter, slightly revised from 7.4 percent.
  • On the expenditure side, household final consumption rose by 6.3 per cent per annum and gross fixed capital formation rose by 3.9 per cent. Both exports and imports rose by 4.5 percent and 0.3 percent, respectively.
  • The Q2 GDP was revised down 5.5 percent from the same quarter last year.
  • GDP adjusted by calendar and schedule rose by 0.9 percent compared to the previous quarter.
  • Treasury Secretary and Finance Minister Berat Al-Bayraq said in a statement that a moderate slowdown in consumption and investment growth combined with a strong recovery in export and tourism income signaled a balance in the economy.

The central bank will raise its one-week repurchase rate by 300 basis points this week, according to the Bloomberg survey's median estimate. Last week, interest rates rose after inflation accelerated to its highest level in 15 years at nearly 18%.

The lira fell 1.4 percent to 6.4969 against the dollar, before cutting the decline to 0.4 percent as of 12:03 pm. in Istanbul ,

The yield on 10-year Turkish government bonds jumped 20 basis points to 19.75 percent, after a drop of 221 basis points last week.

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