ITO President Avdagiç calls on banks for loan interest rate cuts

Istanbul Chamber of Commerce President Şekib Avdagiç stated that the Turkish economy recorded a growth rate of 2.3 percent in the second quarter of the year, expressing expectations that banks will rapidly lower loan interest rates in parallel with the Central Bank's interest rate cuts.

Economic Growth and Sectoral Distribution

ITO President Şekib Avdagiç stated that according to the announced data, the Turkish economy grew by 2.3 percent in the second quarter of the year, emphasizing that they are focusing as much on which sectors drove the growth as on its speed.

Stating that the sub-breakdowns in the second quarter revealed a much more promising picture compared to the previous quarter, Avdagiç noted that this picture contains important clues regarding economic balances.

Positive Development in the Industrial Sector

It was announced that the industrial sector, which experienced a contraction of 0.8 percent in the first quarter, returned to positive territory by growing 2.4 percent in the second quarter.

It was stated that such a recovery in the industrial sector is among the most valuable elements in terms of the quality of the announced growth data.

Foreign Trade and Agriculture Data

It was recorded that a more positive outlook was observed on the foreign trade front compared to the previous period, and the sharp drop in exports of goods and services, which was 12.7 percent in the first quarter, receded to the 3.4 percent level in the second quarter.

While it was reported that net external demand progressed more favorably during this period when imports decreased by 6.4 percent, the 13.3 percent increase in the agricultural sector was also found to be quite valuable.

Investment Appetite and Loan Interest Rate Expectations

Reminding that there has been a noticeable slowdown in investment appetite, Avdagiç noted that the recovery in industry and the closing of the loss in exports are promising, but the permanence of this momentum depends on investments gaining speed once again.

Avdagiç announced that they expect the statements regarding banks pulling down loan interest rates this week in parallel with the Central Bank's 300 basis point cut to be implemented rapidly.