Comments by Turkey's finance minister after the nation's Q2 GDP release earlier
- There is a move towards export-based growth in the data
- Lead indicators show slowdown in Q3 domestic demand
- Main targets are combating inflation and cutting current account gap
I know it's his job to put a positive spin to things but you can't fight what the chart/data says:
The lira may have gotten a bit of a relief today that the GDP readings beat estimates but it still continues to highlight a slowdown in the economy. With inflation continuing to accelerate and the lira weakening as well, it's not likely things will improve in Q3. And that will continue to weigh on the lira over time as much as the weakening lira is also weighing on the economy.
Putting into context, the flagging growth in Q2 came about with a 13.9% depreciation in the lira against the dollar. In Q3 so far, the lira has declined a further 28.8% against the greenback. Ouch.
