Turkey outpaces peers as economy shrinks 9.9% in Q2 due to COVID-19

Turkey outpaces peers as economy shrinks 9.9% in Q2 due to COVID-19

Turkey’s economy did better than its peers in the second quarter of the year and fared better than forecasts as the government, via its stimulus campaign, contained the damage from the coronavirus pandemic, Trend reports citing Daily Sabah.

The country's gross domestic product (GDP) in the April-June period shrank 9.9% from a year earlier after it had grown 4.5% in the previous three months, according to Turkish Statistical Institute (TurkStat) data on Monday.

"We knew that we would feel the effects of the most catastrophic pandemic of the century that brought the world economies to a halt in the second quarter," Treasury and Finance Minister Berat Albayrak said, evaluating the data.

Contrary to the pessimistic expectations, Turkey’s GDP ratio showed a good result compared to other countries, Albayrak said on Twitter, calling the foundations of Turkey's economy "robust, dynamic and strong."

"I hope we will end the year positively with an economic model that supports its citizens," the minister said, stressing national economic targets and employment-based production. He had earlier estimated this year’s performance between a contraction of 2% and a 1% gain.

In a Reuters poll of 14 economists, the median estimate was for an 11.8% year-over-year contraction in GDP, with estimates ranging from declines of 7.1% to 13.1%.

The median of 17 forecasts in a Bloomberg survey was for a contraction of 10.7%. A group of 17 economists surveyed by Anadolu Agency (AA) had projected the economy to have narrowed 11%, with forecasts hovering between minus 7% and minus 15%.

Many larger economies, however, fared worse in the second quarter than Turkey and it also outpaced some peers including Mexico, whose economy shrank more than 17% on a quarterly basis.

Beginning in March, Ankara shut schools and some businesses including many factories, closed borders and adopted weekend stay-home orders. Much of the economy was reopened in June as most of the lockdown measures were lifted.

As the economy rebounded, industrial production grew in June for the first time since February and economic confidence increased for the fourth consecutive month in August.

Turkey's GDP at current prices amounted to TL 1.04 billion ($153.18 billion) in the April-June period, the TurkStat data showed.

The seasonally and calendar adjusted GDP with chain-linked volume index decreased by 11% compared with the previous quarter, according to the data.

In light of the activities constituting gross domestic product, TurkStat said, the value-added increased 4% in the agricultural sector year-on-year in the second quarter.

The services – wholesale and retail trade, transport, storage, accommodation and food service activities – and industry sectors' value-added went down 25% and 16.5% on a yearly basis.

The government's final consumption expenditure dropped by 0.8, while gross fixed capital formation fell 6.1% in the second quarter of 2020 compared with the same quarter of the previous year.

"Compensation of employees increased by 0.5% and net operating surplus/mixed income decreased by 2.4% in the second quarter of 2020 compared with the same quarter of the previous year," the institute noted.

The Organisation for Economic Co-operation and Development (OECD) announced last week that its 37 mainly wealthy member states had suffered an unprecedented 9.8% economic shrinkage in the second quarter of 2020.

The impact of the pandemic and lockdown measures far outstripped the 2.3% shrinkage in real GDP recorded in the first quarter of 2009, at the height of the financial crisis, the OECD said.

To offset the fallout brought on by the pandemic, Ankara in mid-March unveiled a stimulus package, while lenders also revved up lending to support citizens and businesses, postponing debt payments and reducing tax burdens in some sectors. Since then, the measures have gradually been expanded.

The Central Bank of the Republic of Turkey (CBRT) also injected liquidity and delivered a series of rate cuts.

Turkey is determined to enter 2021 by erasing the traces of the pandemic, and the country will see a "V-shaped" recovery in the GDP data, Albayrak stressed.

The minister also shared a chart that showed Turkey's GDP result fared better than several economies, including the U.S., which shrank by a record 31.7%, the U.K. by 22.8%, Spain by 22.1%, France by 19.2%, the EU by 14.1%, the G-7 by 11.9% and Japan by 10%.

Economists say that high-frequency indicators point to growth accelerating in the third quarter, adding that the economy would come out of the pandemic period with a V-shaped growth.

Iran urges US to return JCPOA
Iran urges US to return JCPOA
Iran to commit to JCPOA obligations - if Europe, US return - FM Zarif
Iran to commit to JCPOA obligations - if Europe, US return - FM Zarif
Iran may cancel additional protocol on nuclear deal -  Foreign Policy Commission
Iran may cancel additional protocol on nuclear deal - Foreign Policy Commission
Loading Bars
Latest
UK business activity suffers steep slump in January amid fresh lockdown
Kazakhstan boosts exports volume to Canada amid COVID-19
Kenya Airways suspends flights to France, Netherlands due to COVID-19
Italy tells TikTok to block users after death of young girl
UK records another 40,261 coronavirus cases, 1,401 deaths
Canada's Trudeau presses Pfizer CEO on vaccine shortage, hints at travel crackdown
Swiss court finds Israeli businessman Beny Steinmetz guilty of corruption
Georgian ski resorts remain closed
Kazakhstan increases volume of petroleum oil exported to Germany
Four men jailed for manslaughter of 39 Vietnamese migrants in UK
Reports that Azerbaijani Minister of Sports fell into coma - not true
Turkey registers more than 5 967 new coronavirus cases
Iran has increased oil export - Minister
UAE confirms it inked $23 billion deal to buy F-35 jets, drones from U.S.
Georgian President meets EU Commissioner for Neighborhood and Enlargement
Azerbaijan discloses trade surplus with Romania
East Kazakhstan prolongs restrictions
Azerbaijani State Customs Committee exceeds forecast of budget receipts in 2020
‘Bibiheybat’ Ship Repair Yard completes overhaul of ‘Ramiz Hajiyev’ floating crane
Azerbaijan’s export of precious stones and natural pearls up
State Oil Fund of Azerbaijan unveils budget revenues and expenditures
Azerbaijan's Central Bank talks images of new manat banknotes appearing on social media
Azerbaijan discloses area of liberated lands sown with wheat in Aghdam
Azerbaijan confirms 632 more COVID-19 recoveries
Azerbaijani, Georgian FMs exchange views on latest situation in region
Period of revival of previously occupied Azerbaijani lands already began - ambassador
Denim production to be launched at textile enterprise in Uzbek Bukhara region
Azerbaijani expert talks future plans for import of hydrogen vehicles
Georgia - one of largest beneficiaries of EBRD investments per capita
USAID provides comprehensive support to entrepreneurship dev’t in Turkmenistan
French Proparco provides Georgian hospitals with grant to support COVID-19 battle
Uzbekistan to make strengthening relations with states of Central Asia priority
Georgia to establish blackberry plantation via state program
India’s role in combating COVID-19 through vaccine development and manufacturing
Russian Gazprombank expecting Azerbaijani sovereign rating's return to 'stable' outlook
Support for revival of Nagorno-Karabakh must become way of life – Azerbaijani minister
Tesla Israel headquarters nears completion
Armenian soldiers demanding compensation for participation in Karabakh war
Azerbaijan shows footage from Yukhari Abdurrakhmanli village of Fuzuli (VIDEO)
Azercell is always leading with its exemplary service quality
Uzbekistan may consider temporary suspension of yarn exports
Georgia reveals volume of domestic debt
Walmart expands vaccinations in boost to U.S. COVID-19 program
Israeli company eyes creating lavender plantations in Uzbek Namangan region
Georgia reveals volume of imported oil bitumen
European standard bakery to open with support of Bank of Georgia
Kazakhstan investing in Georgia across wide range of economy spheres
Georgia sees decrease in import of aviation fuel
Azerbaijani president declared Karabakh status issue - thing of the past, MFA says
Dagestan starts exporting ceramic products to Azerbaijan
Georgian RMG Gold company's total sales increase
Demand for notes of Central Bank of Azerbaijan exceeds supply
Assessment of damage caused by Armenia to Azerbaijani civilian objects continues
Volume of cargo passing through Astara terminal increasing from year to year
Criminal case opened against more terrorists used by Armenia against Azerbaijan
National Bank of Kazakhstan determines strategic initiatives for 2021
Bukhara oil refinery produces floating pontoons to eliminate loss of light hydrocarbons
Azerbaijan establishes Agency for Development of Economic Zones
Azerbaijan developing employment programs for future residents of liberated lands
Georgia decides to increase subsidies for flour
UK can help Azerbaijan to demine liberated lands - ambassador
Azerbaijan, UK discuss issues of development of co-op in area of defense
EU, FAO supporting agriculture and rural development in Georgia
Automated warehouse system introduced at Uzbekneftegaz JSC
Projected volume of trade turnover between Turkmenistan, US for 2021 named
Kazakhstan's monetary base surges in value in Dec. 2020
Uzbekneftegaz manages to reduce imports of materials, technical resources
Elon Musk to offer $100 million prize for 'best' carbon capture tech
Kazakhstan boosts petroleum oil exports to Spain despite COVID-19
Georgia to restore operations of municipal transport, schools and stores
Application of TRACECA single transit permit digitalizes transport and logistics sector
Azerbaijani gymnasts to take part in European Championships in Switzerland
Kazakhstan deregulates tanker call-in services for oil crude, products export
Azerbaijan's energy company building new substation in liberated Shusha (PHOTO/VIDEO)
Regular flights to resume from February 1 in Georgia
PASHA Bank's branch in liberated Shusha to help implement territories' restoration initiatives
Nar offers special discounts for Karabagh war veterans
Austrian Enhanced Resource Company talks about work plans in Azerbaijan for 2021
Azerbaijani banking community eyeing dev't of entrepreneurial ecosystem in liberated territories
German government sees 2021 GDP growth of 3%
Kazatomprom completes COVID-19 testing at its JV with French Orano
Introduction of Euro-5 diesel standard postponed in Georgia
Azerbaijan studying Turkey's experience to create liberal electricity market
Baku Higher Oil School holds discussions on ‘Natural resources of Karabakh’ (PHOTO)
Volume of vegetable oil imported by Turkmenistan from EAEU revealed
Major foreign companies to support logistics and fulfillment center creation in Kazakhstan
Volkswagen operating profit drops by half in 2020
Azerbaijan discloses commercial banks' total share in GDP
Azerbaijan-Turkmenistan co-op development serves economic well-being of region - MP
Georgian government's action plan has direct, clear priorities - PM
Demand for dairy products of EAEU countries increases in Turkmenistan
Cotton fiber production increases in Uzbekistan
All preventive measures to be taken in connection with COVID-19 at Azerbaijani schools
Public Council under Azerbaijani Ministry of Ecology to assess damage in liberated lands
Azerbaijan's PASHA Bank talks government initiatives for restoring liberated territories
Passenger traffic of Georgian airports significantly down
Tutoring activity may be resumed in Azerbaijan soon - minister
Turkmenistan increases import of flour from EAEU
China's CEIC, China Reform set up $1.55 billion new energy fund
Uzbekistan reduces gasoline production
All news