Capital Economics expects Turkish economy to contract in the first quarter of 2022

Capital Economics reported that the Turkish economy will contract in the first quarter of 2022, which is likely to be followed by a sluggish recovery.

Stating that there are signs that Turkey’s competitiveness in foreign trade has started to decline and that the weakness in investments is expected to continue, Capital Economics emphasized that it expects the Turkish economy to contract in the range of 2.5-3.0 percent in the first quarter of 2022. While Capital Economics predicted that the contraction in the first quarter would be followed by a sluggish recovery, it predicted that the Turkish economy would grow by 0.8 percent in 2022, below market expectations.

Capital Economics also predicted that the headwinds created by the Russia-Ukraine conflict would contribute to keeping inflation high in Turkey for a long time.

foreks.com

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