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Turkey: tourism and tighter policy to hinder recovery

The 11% q/q drop in GDP in Turkey in Q2 was smaller than we had expected and we now forecast the economy to slump by 3% this year (previously 5.8%). But the recovery over the coming quarters will be held back by weakness in the tourism sector as well as the recent tightening of monetary conditions.
Jason Tuvey Senior Emerging Markets Economist
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