Some alarming signs from Turkey have sent its exchange traded fund (ETF) down more than 11% today.
The country is suffering from its slowest growth rate in six years, rising inflation and current account deficit, factors that are leading some to question the overall health of Turkey’s economy, reports Hot News Turkey.
In the second quarter of this year, the economy grew a scant 1.9% compared to last year’s 4.1%. In the first quarter of 2008, growth was 6.7%. Overall this year, Turkey expects growth of 4.5%. For several years, growth stood at a robust 7%. Inflation is in the double digits, at 11.8%.
To make matters worse, the Workers’ Party (IP) has made a complaint and demanded an investigation into the Turkish connections of a charity fraud case in Germany, says Hot News Turkey. According to an indictment, donations to the religious charity Deniz Feneri were transferred or sent to pro-government Islamist media in Turkey and even the Prime Minister’s office.
If there is a link between the ruling AKP Party and the charity, it could spell trouble, since the party narrowly survived a closure attempt in July.