Banking watchdog predicts further recovery in Turkish economy in 2010
Posted by meb at September 15th, 2009
The Banking Regulation and Supervision Agency (BDDK) has announced they expect the Turkish economy, which has already entered a recovery phase, to recuperate further in 2010, albeit gradually.
Evaluating the impacts of an ongoing global financial crisis on the Turkish economy in their “Financial Markets Report,” the banking watchdog said recent tax reductions in various sectors have contributed much to rejuvenation in the markets, adding that the current recovery trend is expected to continue in 2010.
The BDDK report estimates, however, that the recovery will not be instant but rather slower. Mentioning certain risks in the market, the report reads: “Although international markets signal the end of the crisis is not far away, a recovery will arrive only step by step, not directly. The fact that companies have difficulty accessing loan sources and the increasing debt of the private sector add to concerns that the crisis’ risks will prevail for some time.”
Underlining that the crisis’ shocks in foreign markets have also hit the Turkish economy, creating a volatile market atmosphere, the BDDK report noted that recent indices suggest that the country has started to see light at the end of the tunnel. Recalling that Turkey’s current account deficit declined by 75.7 percent in the January-June period of 2009 over the same months of 2008, the report said such a factor also increased hopes for recovery.
source: Today’s Zaman
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