Turkey’s economy tumbles into first recession since 2009 as polls loom

Two consecutive quarter-on-quarter contractions in economic output is widely considered to be the definition of a recession. (File/AFP)
Updated 11 March 2019

Turkey’s economy tumbles into first recession since 2009 as polls loom

  • Economic output contracted by 2.4 percent in the final three months of the year
  • Two consecutive quarter-on-quarter contractions in economic output is widely considered to be the definition of a recession

ANKARA: Turkey’s economy entered its first recession in a decade, official data showed on Monday, just weeks before President Recep Tayyip Erdogan’s government faces local elections where growth and inflation will be key issues for voters.
Economic output contracted by 2.4 percent in the final three months of the year compared to the third quarter on a seasonally and calendar-adjusted basis, the Turkish Statistics Institute (TUIK) said.
That followed a drop in the third quarter as well. Two consecutive quarter-on-quarter contractions in economic output is widely considered to be the definition of a recession.
The economy shrank by 3 percent in the fourth quarter of 2018 compared with the same period in the previous year.
Growth came in at 2.6 percent for 2018 overall, but that was still much lower than the 7.4 percent recorded in 2017, a turbulent period following the 2016 failed coup and terror attacks.
The flagging economy coupled with a currency crisis last year are sensitive issues for Erdogan and his ruling Justice and Development Party (AKP) before the vote on March 31. The Turkish leader has often boasted of the country’s strong growth during his time in power.
Inflation has also remained high. It struck a 15-year peak in October at 25.24 percent before falling below 20 percent in February, with food prices hit particularly hard.
The last time Turkey entered a recession was in 2009 after the global economic crisis hit foreign and domestic demand.


Hungry Davos attendees to sample Saudi delicacies at Misk cafe

Updated 20 January 2020

Hungry Davos attendees to sample Saudi delicacies at Misk cafe

  • The Saudi Café – operated by a Saudi chef, will introduce a piece of Saudi culture to the WEF
  • Misk also plans to release research at Davos

LONDON: Davos delegates will get to sample a taste of Saudi Arabia at a cafe in the event venue in Switzerland this week.
It is one of a series of initiatives organized by the Misk Foundation, a non-profit philanthropic foundation established by Saudi Crown Prince Mohammed bin Salman. It aims to empower Saudi youth to become active participants in the Kingdom’s future economy.
“The Saudi Café – operated by a Saudi chef, will introduce a piece of Saudi culture to the WEF,” the Misk Global Foundation said in a statement on the eve of the gathering.
Some 3,000 leaders from the worlds of business, public policy, culture and technology are due to arrive in the Alpine town of Davos for the annual meeting of the World Economic Forum (WEF), which begins on Tuesday.
Positioned at Promenade 80 and open daily to all, the Saudi Café will also offer networking and working spaces alongside coffee and traditional Saudi delicacies.
Misk also plans to release research at Davos highlighting how some of the biggest challenges facing attendees can be addressed by youth-led solutions.