Weekly Report 10-16 May 2016

B. Yildirim elected as new AKP leader and Prime Minister

External rebalancing continues in Q1:16, due to a favourable energy bill

Tourist arrivals decline by 10.3% y-o-y in the first quarter, due to persisting tensions with Russia and rising security concerns

Real GDP growth gains momentum in Q1:16, rising by 4.3% y-o-y

Headline inflation falls to a low of -3.3% y-o-y in April, due to lower food prices

Cracks in the ruling coalition heighten political uncertainty 18 months after the previous elections

Economic growth maintains momentum in Q1:16

Activity accelerates to a 10-quarter high of 3.5% y-o-y in Q1:16

Bold moves to end the political deadlock

Deflation accelerates to -0.7% y-o-y in April, mainly due to a sharper decline in food prices

Customer deposits continue to grow at a robust rate in Q1:16 (6.2% y-o-y)

Credit to the private sector posts strong growth in Q1:16 (8.5% y-o-y)

Current account deficit narrows in FY:15, to a still high 11.2% of GDP

Economic growth reaches a 7-year high of 2.6% y-o-y in Q1:16

Headline deflation remains stable at -2.5% y-o-y in April

Headline inflation rises by 1.3 pps to 10.3% y-o-y between March and April, mainly due to higher core inflation

The CBE likely to keep its policy rates on hold until the end of the current fiscal year