Wb: Lıra Deprecıatıon Maın Downsıde Rısk On Inflatıon

- Recent depreciation in the lira was the main downside risk on the positive inflation outlook, which had improved by the sharp decline in oil prices, according to an economic note released by the World Bank, on Tuesday.

"The outlook for inflation and the current account has improved substantially due to the sharp decline in oil prices. The sharp decline in oil prices, the expected mean reversion in food prices, and the favorable base effect will support disinflation in early 2015. The renewed depreciation trend in the Lira is the main downside risk on the positive inflation outlook" said in the December issue of the "Turkey Regular Economic Note.

ECONOMIC GROWTH
"The economic outturn disappointed in the third quarter, as a shift from inventory accumulation to destocking more than offset the recovery in other components of domestic demand" the note went on, despite a disappointing headline number, the composition of growth had become more balanced.

Private consumption and private investment had recovered markedly and government spending had expanded at a reasonable rate, according to the note and net exports had continued to support growth. "We revise down our estimate of GDP growth in 2014 to 3.1 percent from our October forecast of 3.5 percent."

UNEMPLOYMENT RISING
Unemployment had increased as the labor force expanded rapidly, despite strong job creation, the World Bank said, "The sharp increase in the labor force reflects both demographic change and increases in labor force participation among women, both of which are expected to continue and contribute to raising Turkey’s growth potential over the medium term."

"The fall in oil prices, and more dovish statements from the US Federal Reserve sparked a mini-rally in Turkish assets until late November" said in the note, pointing to fact like, the benchmark equity index had risen 14.5 percent, while the benchmark bond yield dropped 234 bps in this period and lira had been the best performing currency against the US dollar among major Emerging Market currencies until November 27.

"Recent currency volatility once more underscores the vulnerability of Turkey to changes in investor sentiment, which limits the room for maneuver of the CBRT to react to the improved inflation outlook and external adjustment with reductions in policy rates."

Samsunlu ortaokul öğrencisi bilek güreşinde Türkiye şampiyonu oldu

Geleneksel Kumluca Tarım ve Seracılık Festivali çeşitli etkinliklerle devam ediyor

Antalya Devlet Opera ve Balesi "Dünya Dans Günü'nü gala gecesinde kutladı