More worries for Turkey’s slowing economy.
Unemployment rose to its highest level since the aftermath of the global financial crisis at the end of 2016, underscoring the hit to the economy from a cocktail of political and security fears that have hit sectors from tourism to banking.
Turkey’s jobless rate climbed to 12.7 per cent in December from 12.1 per cent – a worse than expected jump – and accelerating from 10.8 per cent in the same month in 2015. It was the sixth consecutive monthly climb in joblessness.
Rising unemployment has been coupled with Turkey’s worst economic slump since 2008, with growth shrinking by 1.8 per cent in the third quarter.
The lira has also been the worst performing emerging market currency of 2017, heaping inflationary pressures on the economy and posing a headache for the country’s central bank which will make its latest monetary policy decision tomorrow.
Analysts are expecting no change to the CBRT’s three main interest rates after it eased credit conditions with a rate cut in January. Still, the lira has taken a fresh blow this week after the Turkish government has been engaged in an almighty diplomatic row with the Netherlands.
Following a series of weekend spats – where Turkey’s finance minister was barred from entering the country and its family minister turned away at the border – Ankara has now refused entry to the country to the Dutch ambassador and blamed Dutch troops for the massacre at Srebrenica