How has this week been in the economy?

While the past week witnessed developments in the US debt limit crisis and interest rates for global markets, the statements of President Erdoğan, who was re-elected in Turkey, the first quarter growth and the abolition of the prepaid premium in currency protected deposits came to the fore.

Here’s the economy last week…

“RESOLVING THE DIFFICULTIES CAUSED BY INFLATION IS THE TOP PRIORITY”

President Recep Tayyip Erdoğan also gave messages on the economy in his balcony speech. “Resolving the problems caused by price increases caused by inflation and compensating for welfare losses is the most urgent topic of the coming days,” Erdogan said.

PRE-PAID PREMIUM DECISION AT KKM

The Central Bank of the Republic of Turkey (CBRT) has taken a new decision for the exchange-protected deposit application.

Premium payments can be made at the end of maturity in KKM accounts that will be opened or renewed as of June 1st. Premium payments will be made in TL.

“DEBT LIMIT” Draft PASSES THE SENATE

The U.S. Senate has approved a bill that will prevent the country from defaulting by increasing the debt limit.

The US Senate also voted for the Bill of Fiscal Responsibility, which was agreed upon after long negotiations between the White House and the Republicans and was accepted by the House of Representatives by 314 votes to 117.

CBRT RESERVES ARE OVER! PRE-ELECTION LOSS EXCEED 32 BILLION DOLLARS

Total reserves of the Central Bank decreased by $3.1 billion in the week of May 26 to $98.4 billion. Net reserves decreased to -4.4 billion dollars, while net reserves excluding swaps decreased to -60.5 billion dollars. The bank’s five-month reserve loss before the election exceeded $32 billion. Between the 2 rounds of the presidential election, there was a decrease of 6.6 billion dollars in total reserves.

GROWED 4 PERCENT IN THE FIRST QUARTER

With the effect of the increase in public investments before the earthquake and the election and the demand of consumers in the inflation environment, the growth in the first quarter was above the expectations with 4 percent. While the contraction in exports drew attention in the first quarter, the decline in agriculture and industry also came to the fore in terms of the sector. The construction sector, on the other hand, displayed the best performance in 5 years with a growth of 5.1 percent.