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$4.4bn.
Turkey's state gas grid operator Botas has opened a tender for a gas
pipeline to supply Azerbaijan’s exclave of Nakhchivan.
Turkey’s air force has conducted airstrikes against Kurdish separatists in northern Iraq, highlighting another front where Ankara is busy giving an impression of military might while the Turkish economy teeters on the edge of absolute crisis.
Turkey was ‘in the wars’ again on June 17, seemingly linking up with Iran to secure some extra artillery fire as it launched a major joint air and ground operation against Kurdish insurgent militants over the border in northern Iraq, and denying a French claim that it harassed a French warship on a Nato mission as “completely untrue”.
Inside Turkey, the government has continued its crackdown on Kurdish politicians, activists and sympathisers it accuses of links to the PKK. It has replaced almost all pro-Kurdish mayors in the southeast of the country with government appointees.
3.0 Macro Economy
Main Macro Indicators
2015
2016
2017
2018
Q1
Q2
Q3
Q4
2019
Q1
Q2
GDP Growth (y/y)
6.1
3.2
7.5
2.8
-2.3
-1.6
1.0
6.0
0.9
4.5
-
GDP (per capita, $)
10,915
10,817
10,537
9,346
-
-
-
-
9,127
-
-
GDP (current, TRYbn)
2,339
2,609
3,111
3,724
922
1,023
1,146
1,190
4,280
1,071
-
GDP (current prices, $bn)
859
863
852
766
172
174
202
206
754
176
-
CPI (%, eop, May)
8.8
8.5
11.9
20.3
19.7
15.7
9.3
11.8
11.8
11.9
11.4
Lira-loans (%, y/y, May 22)
14.4
12.3
24.9
1.8
3.0
-0.5
4.0
13.9
13.9
19.1
38.6
Policy Rate (%, eop, active)
8.8
8.3
12.8
24.1
25.5
23.9
16.3
11.4
11.4
9.3
7.5
Population (mn)
78.7
79.8
80.8
82.0
-
-
-
-
83.2
-
-
Unemployment (%, eop)
10.3
10.9
10.9
11.0
14.1
13.0
13.8
13.7
13.7
13.8
-
CA Balance ($bn, Apr)
-32.4
-31.5
-46.6
-28.3
-1.88
-1.29
5.92
-1.07
1.67
-7.64
-5.1
CA Balance/GDP (%)
-3.8
-3.6
-5.5
-3.7
-1.1
-0.7
2.9
-0.5
0.2
-4.3
-
Budget (TRYbn, Apr)
-23.5
-29.9
-47.8
-72.6
-36.16
-42.4
-7.2
-37.9
-123.7
-29.6
-43.2
Budget Balance/GDP (%)
-1.0
-1.1
-1.5
-1.9
-3.9
-4.1
-0.6
-3.2
-2.9
-2.8
-
USD/TRY (eop, Jun 25)
2.92
3.53
3.79
5.29
5.56
5.79
5.65
5.95
5.95
6.61
6.86
source: imf, tuik, treasury, central bank
Turkey was the fastest growing OECD country in Q1 and in April.
“Lira weakness pushed up prices in the country,” bringing the annual inflation
rate to 11.4% in May from 10.9% in April.
Just 0.5pp and even the finance industry trolls start complaining about booming prices? The finance industry and the government trolls appear to have concluded that Turks are muttonheads who do not grasp that inflation has been falling due to some ‘high-level mathematics’ while prices were
20 TURKEY Country Report July 2020 www.intellinews.com