Turkey expects lower growth amid currency turmoil

ISTANBUL – Turkey expects lower economic growth in coming years amid concerns over inflation and a sliding currency.

Treasury and Finance Minister Berat Albayrak presented the government’s economic plan Thursday, targeting 2.3 per cent growth for 2019 and 3.5 per cent for 2020. The previous target was 5.5 per cent for both years.

Albayrak estimated inflation in 2018 would be 20.8 per cent. The Turkish lira has lost around 40 per cent against the dollar so far this year, sharply raising the price of imports.

The central bank last week raised interest rates sharply, from 17.75 per cent to 24 per cent, to try to stem inflation and support the currency.

Investors have been worried by Turkey’s high levels of foreign debt, President Recep Tayyip Erdogan’s economic policies and a diplomatic and trade dispute with the United States.