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Despite recent growth of 1.2% in late 2023, Turkey experienced a contraction of 0.2% in the subsequent quarters, meeting the technical definition of a recession. The decline indicates decreasing economic activity, frustrating recovery efforts. Turkey relies heavily on its manufacturing sector for growth, and ongoing contraction puts further strain on inflation and national debt.
Conclusion: A Mixed Bag of Progress and Challenges
In conclusion, while there are encouraging signs in Turkey's economy—such as the gradual decline in inflation and interest rate adjustments—serious challenges remain. With high inflation rates, growing trade deficits, and a depreciating currency, Turkey is still navigating through a complex economic landscape.