80 percent inflation at 7.6 percent growth: when will Turkey implode?

Istanbul Even the biggest optimists in Ankara find this uncanny: annual inflation is at a dizzying 80 percent, while at the same time the Turkish economy continues to grow at a rapid rate. Gross domestic product grew by 7.6 percent year-on-year in the second quarter, as announced on Thursday. Between April and June alone, the economy grew by 2.1 percent.

Growth is calculated by a complex index that takes multiple factors into account. If you compare the GDP values ​​on a pure currency basis, the growth is even stronger. Calculated in dollar prices, the economy grew by 15.4 percent from US$ 190 billion to US$ 219 billion. The exchange rate of the lira to the dollar was stable between 14 and 16 lira per dollar during the assessment period.