During the last two weeks, the Turkish economy was highlighted by the following items:
- CPI index rose by 5.3%y/y in Aug, same figure as for July.
- Current Account posted a surplus of US$127mn in Aug, mainly thanks to tourism revenues.
- Capital Account recorded a surplus of US$3.74bn the same month due to inflows for bonds and equities.
- Industrial Production contraction slowdown in Aug to 6.3%y/y (v.s. -9.2%y/y in July)
- IMF: Erdogan stated that its Gov’t and IMF are close to resolve a dispute on an independent tax authority, a prerequisite for a possible IMF loan. But later on, State Minister Babacan announced that an Agreement is only possible if IMF accepts their recently disclosed “Medium-Term economic program”.