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.
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.