In the second quarter of this year, Turkey’s economic growth slowed down, facilitated by the authorities’ decision to strengthen financial stability by raising interest rates. This occurred against a backdrop of active consumption by households, stimulated by significant pre-election spending by President Recep Tayyip Erdogan. Despite this, it is expected that overall economic activity will remain sluggish until the end of the year, especially in the industrial and export sectors. Goldman Sachs predicts Turkey will enter a recession in the second half of 2023.
