Tags: Turkey | GDP | economy | coup

Turkey's Economy Falls Most Since 2009 Recession Amid Coup, Instability

Turkey's Economy Falls Most Since 2009 Recession Amid Coup, Instability

(Dreamstime)

By    |   Tuesday, 13 December 2016 11:01 AM EST

Turkey’s economy unexpectedly shrank in the third quarter as a failed coup attempt political fallout weighed on business activity. The country’s economy hasn’t contracted since 2009, when the global economy suffered the biggest slowdown since the Great Depression.

Sluggish business activity could be a political challenge to President Recep Tayyip Erdogan, who unveiled a draft constitution over the weekend designed to give him an executive presidency, The Financial Times reported.

“His campaign to get a new constitution approved via a referendum depends on his ability to convince Turks that he can deliver the economic prosperity the country enjoyed when he was prime minister from 2003 to 2014,” the newspaper reported.

Gross domestic product shrank an annual 1.8 percent in the three months starting in July, according to Turkey’s statistics bureau. The median estimate in a Bloomberg survey forecast an annual expansion of 0.3 percent.

The failed coup, terrorist attacks and bad weather all contributed to the economy’s worse-than-expected performance, Deputy Prime Minister Mehmet Simsek said in an e-mailed statement. “Geopolitical tensions, weak global trade and the drop in capital flows to emerging economies weighed on growth in the third quarter,” he said.

Consumer and business confidence have fallen since the July 15 coup attempt, which led to falling investments and political instability as the government went after perceived enemies, Bloomberg News reported.

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Turkey's economy unexpectedly shrank in the third quarter as a failed coup attempt political fallout weighed on business activity.
Turkey, GDP, economy, coup
224
2016-01-13
Tuesday, 13 December 2016 11:01 AM
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