The latest projection from the Organization For Economic Cooperation and Development has placed a dime view upon Turkey, with contraction anticipated and related shares and exchange traded funds (ETFs) left vulnerable.
As private investment has waned because of the poor economy, exports in Turkey are forecast to plunge 12%. But in better news, if the Central Bank cuts interest rates, the economy may grow 2.6% next year, reports Hurriyet. In order to win over investors, the government must keep spending under control.
The OECD is predicting a 5.9% contraction in 2009, and for now, Turkey has put off signing the IMF loan agreement, reports Ben Holland for Bloomberg. Despite the gloomy numbers, the IMF Managing Director believes that consumer sentiment is up in Turkey and manufacturing and employment have resumed, reports Lesley Wroughton for Forbes.
Over the long term, Turkey will need fiscal adjustments and expenditure cuts to help public finances sustain.
- iShares MSCI Turkey Investable Market Index (TUR): up 41.4% year-to-date
For more stories on Turkey, visit our Turkey category.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.