Data released by Turkish Statistical Institute (TurkStat) on Thursday showed that Turkey's Gross Domestic Product (GDP) growth soared at the rate of 5.7 percent in the fourth quarter of 2015 compared with the same period in 2014. The Gross Domestic Product in Q4 2015 rose to 34.8 billion Turkish liras ($12.25 billion).
Performance in the fourth quarter pushed the overall annual GDP growth to 4 percent, with cumulative GDP reaching 131.3 billion Turkish liras in constant prices ($46.2 billion). Turkey now becomes world's fifth fastest-growing economy in last quarter of 2015 following Ireland, India, China and Philippines.
No major impact on TRY exchange rates seen. USD/TRY extends lower to trade around 2.8204 as TRY strengthens. The broader EM risk rally is more important for TRY exchange rates at present and concerns still remain about the direction of monetary policy once the new CBT Governor is announced. The latter factor is the most important ‘known unknown’ for Turkish assets over the medium term.
“We continue to think that TRY will depreciate over the remainder of the year in line with the broadly loose monetary policy stance from CBT. That said, it’s probably too early to buy a dip in USD-TRY ahead of this week’s NFP report in the US.” said Commerzbank in a report.
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