Turkish economic weakness exposed in post-referendum data
Turkish unemployment hit a seven-year peak in early 2017 while the budget deficit rose, data showed on Monday, underlining the economic challenges facing the country a day after its social divisions were laid bare in a referendum.
Turks narrowly voted on Sunday in favour of constitutional changes granting sweeping powers to President Tayyip Erdogan. He has cast the reforms as necessary in part to boost the country's economic development.
Hours after the referendum result, Statistics Institute figures showed the unemployment rate reached 13 percent in the three months to February, from 12.7 percent in the three months to January and 11.1 percent a year earlier.
"Syrian refugees, higher number of bankruptcies, slower economy, public sector lay-offs...and stress on the tourism sector showed its impact on the figures," said BGC Partners chief economist Ozgur Altug.
The non-farm jobless rate rose to 15.3 percent during from 13.0 percent a year earlier, while youth unemployment surged to 24.5 percent from 19.2 percent.
Altug said the labour market "bleeding" might stop once a government employment campaign, providing 12 billion lira in support and expected to create 1 million new jobs, gained traction. The initiative was launched in early February.
Separate data showed the budget deficit jumped to 19.5 billion lira ($5.3 billion) in March, creating a first quarter gap of 14.9 billion lira.
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