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last year.
4.2 Inflation
On July 29, the central bank hiked its end-2020 inflation forecast to 8.4% from a previous 7.4%.
Official inflation stood at 12.6% in June.
Turkey’s inflation-adjusted borrowing costs are among the lowest in the world.
4.3 Industrial sectors and trade 4.3.1 PMI Production dynamics
It is a move past the 50-level that is supposed to indicate a recovery in the manufacturing purchasing managers’ index (PMI) data but PMI compiler IHS Markit has bowed to the Turkish distortions. In its charts, a score of 45 is now enough for the TUIK to signal a recovery in the industrial production data, even though there is no connection between industrial production and manufacturing output in the GDP figures and the monthly industrial production data releases.
18 TURKEY Country Report August 2020 www.intellinews.com
