QNB lowers its growth forecast for Turkey

QNB Finansbank has revised its 2024 growth forecast for Turkey from 4 percent to 3.5 percent, citing consumer spending, credit growth, and tightening measures.

In a report published by the bank's chief economist Erkin Işık and economists Deniz Çiçek and Kaan Özçelikkale, it was stated that the three-month average of real change in card spending data turned negative as of the end of October, noting, "This result indicates that consumer spending, which made the largest contribution to growth in the first half of the year, has weakened in the second half."

WEAKENING EXPECTED IN DOMESTIC DEMAND AND GROWTH INDICATORS

The economists stated that as of the end of October, the 13-week average of real net credit usage had fallen below the zero level, signaling a slow real credit expansion compared to historical trends.

The report by QNB Finansbank economists included the following assessments:

"With the continuation of the tightening carried out by the CBRT through interest rate hikes as well as liquidity and credit regulations, we expect a more pronounced slowdown in real credit usage in the coming period. This will lead to a weakening in domestic demand and growth indicators with some delay."

News Source: 12punto