During the last two weeks, the Turkish economy was highlighted by the following items:
- CPI index rose by 0.5%m/m in Dec09, implying a 6.5%y/y increase.
- Foreign Trade deficit increased for the first time this year while Exports fell by 5.2%y/y in Nov09.
- IMF: Prime Minister Erdogan stated that the Fund has accepted Turkey’s conditions for signing an agreement. State Minister Ali Babacan declared that it could take the form of a two-year stand-by agreement. The markets reacted favourably even on the last day of the year despite getting used to such occasional announcements from the Gov’t.