Turkish Economy Stagnates in 2016, as Production Export Slow - World Bank

Turkey’s Gross Domestic Product (GDP) growth slowed in the first half of 2016 compared with the previous year due to a slower inventory build-up and a decline in net exports, the World Bank said in a report issued on Friday.

WASHINGTON (Sputnik) — The report explained that the stagnation suggests Turkish GDP growth for 2016 will be below the 4 percent seen in 2015.

"Inventory accumulation that led growth in the previous quarter slowed significantly in Q1 [the first quarter of 2016], bringing growth down," the report stated.

Additionally, the report noted, Turkish imports grew faster than exports due to increased domestic consumption, causing a net negative impact on the economy.

The negative trade developments were further exacerbated by security issues and a slump in tourism due to Russian sanctions, the World Bank added, while inflation is likely to increase in the second half of 2016.