In a time when investors are wary of the stability of the global economy, it appears that Turkey and its exchange traded fund (ETF) is performing relatively well.

• The Statistics Institute released a report indicating that Turkish capacity utilization rose by 2.3% in June to 72.7%.  Capacity utilization is a leading indicator of the health of a nation’s manufacturing industry and economic growth , reports Reuters.

• Last month, Turkey’s Central Bank reduced its interest rates to a record low.

• Consumer confidence levels are rising.

• Jobless claims are declining.

Unfortunately, this definitely doesn’t mean that Turkey is in the clear.  The nation declined by a whopping 13.8% in the first quarter from a year ago. The International Monetary Fund expects the nation’s economy to contract by 5.1% for 2009. This is tough on a nation that has seen an average economic growth of nearly 6% from 2002-2008.

Overall, the country has performed fairly well for the year, represented by the iShares MSCI Turkey Invst Mkt Index (TUR), which is up 46.5% year-to-date and above its 200-day moving average.

For more stories on Turkey, visit our Turkey category.

Kevin Grewal contributed to this article.

Tags: Eastern Europe, Emerging Europe, Emerging Markets, Europe, Global ETFs, Middle East, TUR, Turkey