MÜSİAD President Abdurrahman Kaan made a written assessment regarding the third quarter growth figures announced by the Turkish Statistical Institute.
Kaan noted the following in his statement:
The Turkish Statistical Institute (TÜİK) announced the gross domestic product (GDP) results for the third quarter of the year (July-September).
In the third quarter of the year, the growth data, which the market expected at a rate of %1, grew at a rate of %0.9 in parallel with expectations. Thus it confirmed the signs of a bottoming out in the economic recovery.
The Turkish economy, together with the leading indicators, also shows that it will complete 2019 with serious signs of recovery, having given a strong response to the exchange rate crisis it experienced in August 2018.
When the main components of growth are examined on a sectoral basis annually; apart from the construction sector, the agriculture sector, the industry sector, the services sector and public expenditures carried growth upwards.
Specifically regarding the construction sector; the Central Bank’s continuation of the interest rate cut process and the stable state of the Turkish Lira continue to revive the sector by loosening the credit channels. In addition to these; the sector players are increasing interest in housing sales by organizing housing sales campaigns. In summary; the sector is expected to achieve positive growth in the last quarter of 2019. Thus, it is possible for it to close in positive territory by carrying the negative atmosphere of 2019 to almost the %0-1 range as the year-end figure.
The ISO Manufacturing data announced at the same hours was announced at 49.5 in line with expectations, and the previous figure was 49.0.
In summary; the recovery in economic activity is also confirmed by the latest announced GDP growth data. The recoveries in industrial production and in the construction sector are expected to continue at an increasing pace in the coming months. On the Central Bank side too, the continuation of the interest rate cuts and the macroprudential policies that will contribute to the economic recovery may pull the last quarter growth upwards and may enable the recovery to take place in a faster period than expected.
Kaan noted the following in his statement:
The Turkish Statistical Institute (TÜİK) announced the gross domestic product (GDP) results for the third quarter of the year (July-September).
In the third quarter of the year, the growth data, which the market expected at a rate of %1, grew at a rate of %0.9 in parallel with expectations. Thus it confirmed the signs of a bottoming out in the economic recovery.
The Turkish economy, together with the leading indicators, also shows that it will complete 2019 with serious signs of recovery, having given a strong response to the exchange rate crisis it experienced in August 2018.
When the main components of growth are examined on a sectoral basis annually; apart from the construction sector, the agriculture sector, the industry sector, the services sector and public expenditures carried growth upwards.
Specifically regarding the construction sector; the Central Bank’s continuation of the interest rate cut process and the stable state of the Turkish Lira continue to revive the sector by loosening the credit channels. In addition to these; the sector players are increasing interest in housing sales by organizing housing sales campaigns. In summary; the sector is expected to achieve positive growth in the last quarter of 2019. Thus, it is possible for it to close in positive territory by carrying the negative atmosphere of 2019 to almost the %0-1 range as the year-end figure.
The ISO Manufacturing data announced at the same hours was announced at 49.5 in line with expectations, and the previous figure was 49.0.
In summary; the recovery in economic activity is also confirmed by the latest announced GDP growth data. The recoveries in industrial production and in the construction sector are expected to continue at an increasing pace in the coming months. On the Central Bank side too, the continuation of the interest rate cuts and the macroprudential policies that will contribute to the economic recovery may pull the last quarter growth upwards and may enable the recovery to take place in a faster period than expected.