Turkish finance minister expects growth of around 20% in second quarter


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Pigeons fly over Taksim Square during a nationwide curfew that has been imposed to prevent the spread of coronavirus disease (COVID-19), in Istanbul, Turkey, December 5, 2020. REUTERS / Murad Sezer / File Photo / File Photo

ISTANBUL, June 25 (Reuters) – Turkey’s economy is expected to have grown by around 20% in the second quarter of this year and will grow more in 2021 than the government’s forecast of 5.8%, Finance Minister Lutfi said on Friday Elvan.

The strong growth rate in the second quarter will be largely due to what is known as the base effect due to a contraction of nearly 10% in the second quarter of 2020.

Speaking to businesses in the southern city of Gaziantep, Elvan said a recent acceleration in COVID-19 vaccinations would support tourism and the service sector.

“We are looking for double digit growth in the second quarter of the year due to a strong base effect. We are looking for growth of around 20%,” he said.

“We are likely to see a growth rate for the whole year above the medium-term economic program due to investment, industrial production and foreign demand,” he said.

Turkey was one of the few countries to grow in 2020, but economic activity was hit again this year due to strict restrictions in the event of a pandemic, especially in the tourism and service sectors.

Turkey has also made efforts to cut inflation, which has been stuck at double digits for most of the past four years.

Elvan said the central bank’s stance on price stability was important and macroprudential measures would be implemented if necessary to fight inflation.

Reporting by Ezgi Erkoyun and Ali Kucukgocmen; Editing by Dominic Evans

Our Standards: Thomson Reuters Trust Principles.

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