ANKARA: Turkey’s growth slowed in 2014 and demand has been weak in the early months of this year, according to data that highlighted the economic challenges facing the ruling AK party ahead of elections in June.
Gross domestic product grew 2.9 per cent in 2014, compared with a 2013 rate of 4.4 per cent.
High quality global journalism requires investment. For the year as a whole, which began with a central bank interest rate rise, household demand the motor of the Turkish economy barely budged despite an uptick in the fourth quarter.
Trade data indicated the economy would remain relatively weak into this year, with exports and imports both falling in February, by 6 per cent and 7.2 per cent respectively.
The figures came out on Tuesday morning, when life in much of Turkey was disrupted by a mysterious power cut that affected 20 cities and half of the country’s provinces, forcing the closure of the Istanbul and Ankara metros, grounding flights and rendering traffic lights inoperative.
During its 13 years in office, the AK party has based much of its appeal on raising living standards as well as its record on improving the country’s infrastructure. But it is now encountering less favourable economic conditions, and some economists argue that reforms are urgently needed.
“The Turkish electorate votes for the party it believes will bring growth,” said Burcu Unuvar at Yasar University in Izmir.
