During the last two weeks, the Turkish economy was highlighted by the following items:
- Central Bank cut rates by 50bps. Total rate cuts amount to 1000bps since Nov. 08.
- Budget Deficit keeps on deepening in 2009.
- The 2010 Budget was submitted to the Parliament, in line with the figures released under the Medium-Term Economic Program: the deficit at year-end is estimated at TL50.2bn.
- Central Gov’t Debt stock raised to TL431bn in Sept09, implying a 110% roll-over ratio during the 9M09 period.
- Unemployment rate went down to 12.8% as of July-Aug 09, mainly due to seasonality.
- On the back of global risk aversion and following Constitutional court’s decision to halt the Withholding Tax exemption for non-resident investors, Benchmark bonds continued to rise close to 9%, USD/TL reached 1.5 level and the ISE kept on struggling.
- IMF: no concrete development was recorded over last two weeks.