Economists say Turkey will miss growth targets for next two years

Economists say Turkey will miss growth targets for next two years
The lira fell to a record low on Wednesday after Erdogan announced a three-month state of emergency.
By Henry Kirby in London July 26, 2016

Turkey will fail to reach its growth targets for the next two years, according to a poll of 41 economists conducted by news agency Reuters.

Following a failed coup d’etat on July 15, Turkish President Recep Tayyip Erdoğan has engaged in a full-scale purge of all public institutions in the country – a move that has evidently spooked most economists, as illustrated by the downwardly-revised growth forecasts.

The government forecasts of 4.5% GDP growth in 2016 and 5% in 2017 were both revised down to 3.5% by the Reuters panel of economists, after Turkey recorded 4% growth in 2015.

The lira fell to a record low on July 20 after Erdogan announced a three-month state of emergency, a move that could spell further economic damage due to weakened tourism revenues and costlier servicing of Turkey’s large volumes of FX-denominated external debt.

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