The exchange traded fund tracking Turkey’s market has been one of the best performing emerging markets so far this year. The country’s prosperity has pushed inflation higher, which is now threatening to stifle growth, but the Turkish government has helped rein in growth to a more manageable level.

The iShares MSCI Turkey (NYSEArca: TUR) is up 31% year-to-date.

While Turkey’s economy expanded at a slower 3.2% in the first quarter, the growth was still better-than-expected. Market observers now believe that Turkey is heading for a soft landing as the government chips away at its large current account deficit and brings inflation down from the double digits, according to the Financial Times.

“It looks like producers preferred to reduce their stocks amid uncertainty in an economic slowdown. This points to a soft landing,” EFG Istanbul chief economist Haluk Burumcekci, said in the article.

“First-quarter figures are supportive of the central bank’s soft landing and re-balancing themes,” Inan Demir, chief economist at Finansbank AS in Istanbul, said in a Bloomberg report. “We expect no policy impact after this print. Net exports turned out to be the main growth engine. In contrast domestic demand was markedly weaker in the first quarter.”