A short article [in Turkish] on some aspects of the Q2 GDP data

Date:27Sep2017

We’ve written a short piece for BHT, as Turkey Data Monitor.  The article is in Turkish, but all we are saying is that: 1) these growth rates are not all that surprising , given the relatively high pace of credit growth until recently: 2) it is kind of futile to emphasize inconsistencies between GDP and high frequency indicators, as several commentators do, because the latter are under revision; 3) increase in primary spending or primary deficit is not the same thing with government consumption (so there is not a big inconsistency there, either); 4) strong headline growth rate notwithstanding, growth does not seem sustainable for too long (like after Q3 or Q4), given the quality issues with its composition; and 5) although headline growth is high,  our income in USD terms not rising, which sort of attests to the fact that growth is driven by demand (and accompanying imbalances) rather than productivity…

There is a picture that accompanies each point; they are also in Turkish, but most are self-evident…