Turkey's economy shrank by 9.9 percent between April and June compared to the same period last year, Turkish Statistical Institute (TÜİK) reported on Aug. 31. While less precipitous than expected, the drop in gross domestic product (GDP) was still historic compared to the first quarter at a seasonally and calendar-adjusted 11.0 percent, according to TÜİK.
Turkey has room for further fiscal stimulus to combat the economic impact of the coronavirus outbreak as its response so far has been “pretty moderate” compared with other countries in similar positions, a Fitch Ratings executive said on April 23. The steps announced by the Turkish government so far are equivalent to around 2% of GDP, he added.
Douglas Winslow from Fitch said that Turkey's economy will catch up with its sustainable trend of growth next year. "In the first quarter of this year economic growth had accelerated to above 6%. We now anticipate a very sharp contraction in the second quarter, flatter growth in the third quarter and then recovery in the fourth quarter, as activities begin to normalize after the partial lockdown," he said.