Erdogan: Turkey's economy has entered a positive cycle

Inflation in Turkey continues to slow down, and the economy is showing steady growth, President Recep Tayyip Erdogan said. According to him, after a period of instability in March-June, the country returned to a «strong positive cycle.»

The President noted that GDP growth in the second quarter was 4.8%, which he called «a pretty strong result.» With the exception of the agricultural sector, which was affected by frost and drought, most industries are showing a steady recovery.

«The unemployment rate has dropped to single digits, foreign exchange reserves have reached a record, and inflation continues to go down. This will contribute to further improvement of financial conditions,» Erdogan said.

According to the Turkish Institute of Statistics, annual inflation slowed to 33.52% in July from 35.05% in June. The independent ENAG group estimates the price increase to be significantly higher, at 65.15% in annual terms.

After the May peak (75.45%), inflation has been declining for the third month in a row. The Ministry of Finance expects the figure to fall below 20% by 2026. Earlier, the Central Bank of Turkey lowered its key rate by 300 bps to 43%.