Investors pulled out of Turkey late 2013, following corruption charges and political uncertainty in the run-up to elections. However, political tensions have eased after a strong showing by Prime Minister Tayyip Erdogen’s ruling AK Party in elections on March 30.
Turkey’s economy is expected to expand 2.2% this year after 4% growth last year. Observers believe that growth could pick up if the central bank cuts rates as political volatility eases.
On Tuesday, the Turkish Statistical Institute said the country’s first-quarter GDP rose 4.3%, topping forecasts calling for a 4.1% increase.
“After the robust growth data, analysts from J.P. Morgan Chase & Co., Citigroup Inc. and Capital Economics bumped year-end forecasts for Turkey’s GDP expansion to a range of 2.5% to 3.5%,” the Wall Street Journal reported.
iShares MSCI Turkey ETF
