Turkey Industrial Production & Current Account (Jul.)

The chunky 4.3% m/m rise in Turkish industrial production in July confirms that June’s dip in output was a blip. Meanwhile, the current account position has continued to improve. But efforts to turbo-charge the recovery risk fuelling a renewed build-up of imbalances that causes the lira to come under pressure, prompting the central bank to reverse course and start hiking rates again.
Jason Tuvey Senior Emerging Markets Economist
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