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7 percent current account deficit, 7 percent GDP growth

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Today, we will read statements from politicians talking about Turkey’s “7 percent GDP growth record,” which is highest among G-20 and OECD member states.

On the other side of the coin is the current account deficit, which corresponds to 7 percent of GDP and inflation that runs 7 points above the target. This tells us that this GDP growth is unsustainable and growth will ease and there will be stagnation.

The 7.4 percent growth recorded in the first quarter of 2018 is the highest since the first quarter of 2014. Here are the main points: On the production side, the manufacturing sector expanded at 9.3 percent and the service sector registered a 10 percent growth. The construction sector grew by 6.9 percent. Almost all production-related industries registered expansion rates higher than expansion rates in the same quarter of 2017. Let’s ask this question: If we have such a wonderful growth rate, why do businesspeople from different industries complain? This happened not so long ago, but in the January-March period.

On the expenditure side, household spending, which accounts........

© Hürriyet Daily News