Economics
Lira Has Steadied But Summer Plunge Hangs on Turkish Growth
- Some analysts see growth contracting at the end of 2018
- Third-quarter expansion data being released later this month
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A recent respite in Turkish markets hasn’t shielded companies from a toxic mix of high debt and interest rates, and that’s bad news for the country’s economic growth outlook.
The currency crisis that peaked in August and a spike in the central bank’s benchmark rate in September have crippled some companies, reducing demand for new loans and investments. The slump, coupled with weak consumer demand, is liable to hamper growth in the third quarter and produce an economic contraction in the fourth and possibly beyond, according to Inan Demir, an economist at Nomura International Plc in London.