Turkish former central bank chief and nationalist Good Party lawmaker Durmuş Yılmaz on Friday said the country is still in the midst of a recession, adding that the economy had contracted 2.6 percent on an annual basis.
“Despite government spending increasing 7.2 percent within the scope of our domestic demand-based growth model, the economy shrank 2.6 percent,” Yılmaz said on Twitter.
Durmuş Yılmaz@DurmusYillmaz2019Ç1 büyüme rakamı açıklandı. İç talep ağırlıklı büyüme modelimiz çerçevesinde %7.2 artan devlet harcamalarına rağmen ekonomi %2.6 küçülmüştür. Sabit sermaye oluşumu son üç çeyrektir negatif: Kemerleri bağlayın tunelin ucunda ışık yok. Bir süre düşük büyümeye hazır olun.
Official data by the Turkish Statistical Institute published on Friday showed the economy grew by 1.3 percent quarter-on-quarter in the first three months of this year. The trend marks the Turkish economy’s emergence from a technical recession, which is defined as two straight quarters of negative quarter-on-quarter growth.
However, according to Yılmaz, the 2.6 percent decrease on an annual basis give a more accurate picture of Turkey’s economic situation.
“Fixed capital formation is negative for the last three quarters: Fasten your seatbelts, there is no light at the end of the tunnel,” Yılmaz said, referring to an optimistic forecast made by Treasury and Finance Minister Berat Albayrak in May.
“The light at the end of the tunnel becomes brighter,” Albayrak said as he unveiled a new credit package for struggling Turkish firms this month.
Turkey plunged into a recession after a currency crisis that dragged the lira to record lows last year, the foreign debt-focused economy.
Source: Ahval News
