2006 Growth Exceeds Forecasts

April 2007 | Ratings Update

Real GNP rose by 6% in 2006 - a full one percentage point higher than BMI 's forecast - following an upwards revision to Q3 data and a stronger than anticipated performance in Q4. With the current account deficit virtually identical in Q406 to Q405, the data suggests that domestic demand was stronger than originally anticipated. The corollary is that the slowdown arising from the CBT's interest rate hikes in response to the lira's depreciation in May and June 2006 was more shallow than anticipated, and there is upside risks to our 2007 growth forecast.

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