Capital Economics: Turkey is heading towards economic downturn

Capital Economics said Turkey is heading towards economic downturn alongside other countries in the emerging European markets.

"The Turkish economy may contract by 2 percent this year, despite the annual expansion of 4.3 percent in the first quarter of 2020," the London-based research advisory group said in its report.

According to the group, the economic damage will now be more drastic than previously thought, and said, "Production will decrease sharply in the second quarter, and even if the outbreak of the corona pandemic is brought under control soon, it appears that all economies in the region will contract during this year as a whole. "

Capital Economics indicated that the governments in Turkey and Central Europe appear to be heading towards a full closure, and meanwhile, the tourism sectors have stalled, with Turkey and Croatia at risk of Corona's outbreak.

Capital Economics warned that forecasting is very difficult in this environment, and the effect may be much worse than expected.

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