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Moody's sees sharp contraction in Turkey economy on lira turmoil

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Thursday 08, November 2018

Turkey’s economy will likely contract through the first half of next year as the lira’s slump and rising borrowing costs take their toll on the economy.

(Bloomberg)--Gross-domestic output will likely contract two per cent after rising 1.5 per cent this year, and a rebound to three per cent is expected in 2020, Moody’s Investors Service said in a report Thursday.

“Double-digit inflation, a steep increase in borrowing costs and curtailed bank lending are likely to weigh on household purchasing power, private consumption” and investment, the agency said.

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