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Emerging Europe Economics Update

Emerging Europe Economics Update

Turkish GDP: export boost masks weaker domestic demand

Today’s Q3 GDP data surprised on the upside but, as we expected, domestic demand slowed much more sharply than the headline GDP growth rate. The key point though, is that today’s data do not yet reflect the effects of monetary tightening seen since late October. This has further to run and we think data in Q4 and the first half of next year will be much worse.

 

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