ANKARA: The Turkish economy will expand 3.5 percent in 2017, 3.1 percent in 2018 and 3.5 percent in 2019, according to a survey conducted by Bloomberg news. That compares with forecasts of 2.6 percent, 3.1 percent and 3.8 percent, respectively, in last month’s survey. Turkey’s economy grew 5 percent in the first quarter of 2017 as the government boosted spending on everything from wages to investments to spur the economy after a failed military coup hurt growth last year. Expansive fiscal policies boosted household consumption, which is seen growing 3.4 percent this year, up from 2.7 percent previously.
Inflation rose 11.7 percent in May after rising 11.9 percent in April and economists expect prices to rise by 10.6 percent this year and by 8 percent next year, according to the survey. That compares with forecasts of 10.3 percent and 7.9 percent in last month’s survey, respectively. On June 15, the Turkish Central Bank left its benchmark interest rate unchanged and said it would keep a tight monetary stance until inflation eases significantly. Economists see the rate at 8 percent by the end of this year and 8.25 percent by the end of next year, according to the survey.
