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Turkish Government Aims to Spend Its Way Out of Growth Slowdown

  • Government cuts economic outlook for this year and next
  • Yildirim says investments will increase; budget gap to widen
Updated on

Turkey’s government is seeking to overcome an economic downturn fanned by terrorism attacks and a failed military takeover by investing more and expanding budget deficits.

Prime Minister Binali Yildirim lowered his growth forecast for this year and next, saying the economy won’t revert to its longstanding target of 5 percent expansion until 2018. Gross domestic product is seen growing 3.2 percent for 2016 and 4.4 percent for 2017, down from earlier forecasts of 4.5 percent and 5 percent.