Weekly Report 20 - 26 September 2016

Moody’s downgrades Turkey’s sovereign credit rating to non-investment status

The seasonally-adjusted unemployment rate rises to a 6-quarter high of 10.4% in Q2:16

Current account deficit widens to 2.0% of GDP on a 12-month rolling basis in July from 1.1% at end-2015, in line with stronger private consumption

Better trade performance and lower income outflows push up the 12-month rolling current account surplus to a new high of 2.3% of GDP in July from 0.4% at end-2015

Activity accelerates to 2.9% y-o-y in H1:16, supported by stronger services and the normalization in agricultural output

Tourist arrivals remain resilient in 7M:16, sustaining economic growth

Tourist receipts reach an all-time high of EUR 101.4mn (1.1% of GDP) in H1:16

Labour market conditions continue to improve in Q2:16, albeit at a slower pace

Current account deficit widens significantly on an annual basis in Η1:16, due to high investment-related imports

Fiscal performance improves significantly in 8M:16, with the 12-month rolling fiscal balance easing to a surplus of 0.2% of GDP

Labour market conditions improve in Q2:16

Current account deficit reaches a high of 5.5% of GDP in FY15/16