Posted by meb at February 23rd, 2008

Turkey’s economy will probably grow by 4.7 percent in 2008, the lowest forecast this year, according to a Central Bank survey of economists and businesspeople. The estimate fell from the previous survey two weeks ago, when the average forecast was 4.8 percent and from 5 percent at the start of January, the Ankara-based bank reported on its Web site Thursday.

The economy grew 1.5 percent in the third quarter of 2007, the slowest pace since 2001, and industrial production fell in December for the first time in two years.

Inflation in one year will be 5.99 percent, dropping from the previous survey two weeks ago, when the average forecast was 6 percent, said the bank.

The inflation rate in January slowed to 8.2 percent from 8.4 percent a month earlier, still more than double of the bank’s 4 percent target. The central bank lowered its benchmark interest rate by a quarter-point to 15.25 percent on Feb. 14, the sixth consecutive cut, and said on Jan. 31 that space for further reductions was limited.

The inflation rate will rise to 5.2 percent in two years, compared to the previous forecast of 5.17 percent, according to the fortnightly survey of about 80 businessmen and economists.

Source: Turkish Daily News

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