Turkey’s economy expected to grow 6.7 percent in first quarter - poll

Turkey’s economy may expand by an annual 6.7 percent in the first quarter of the year, putting it on track to exceed a growth rate of 5 percent for 2021, according to a Reuters poll.

The forecasts of 14 economists for the first quarter varied between 5 percent and 7.5 percent, Reuters said on Wednesday.

The Turkish economy grew by 1.8 percent in 2020, making it one of the few globally to avoid a contraction during the COVID-19 pandemic. The Turkish authorities sought to keep factories open and engineered a borrowing boom by keeping interest rates at below inflation and instructing state-run banks to almost double lending to businesses and consumers.

The economy may expand by 5.5 percent in 2021, Reuters said. The estimates of 13 economists ranged from 4.5 percent to 7 percent. The median forecast rose from 4.5 percent in a February poll, Reuters said.

The Turkish Statistical Institute is due to announce first quarter growth data on Monday.  

Economic activity is expected to slow in the second quarter, Reuters said, citing tighter financial conditions and restrictions on the population imposed in the first half of May. The economy contracted by 10.3 percent in the second quarter of last year.