Turkey’s 2001 economic performance indicates severe slowdown
In its latest report, the Turkish Central Bank draws a bleak picture of the national economic performance. The Bank’s experts predict a 28 percent drop in capital investments and a 40 percent decline in total investments by the end of 2001.
Consumer price index and wholesale price index are expected to plunge by 65 and 80 percent respectively by the end of the current year. The report, quoted by the Ankara-based Anatolia news agency, stated that the Turkish economy entered a serious slowdown in the first half of 2001, mainly the result of two severe economic crises which hit the nation in November 2000 and February 2001.
All in all, the total capital investments fell by 28.2 percent in the first half of the current year, attributed to fall in machinery and equipment investments. Consequently, local firms cut their stocks due to lower demand.
On a more positive note, the Central Bank indicated that exports of goods and services increased during the first nine months of 2001. Turkey attained a competitive edge in foreign markets with the depreciation of the Turkish Lira (TL) and the economic crisis, factors which played a significant role in this increase of export levels.
Gross Domestic Product (GDP) is expected to shrink by six percent in 2001, when compared to the previous year. This fall will be translated into a 6.5 percent drop in the services sector and 5.7 percent in the industrial sector. The added value in the agriculture sector is predicted to decrease by 5.8 percent due to drought. — (menareport.com)
© 2001 Mena Report (www.menareport.com)