Turkey’s growth slackened in the first quarter of 2005 due to rising energy costs and increased taxes, cutting into consumer spending, as prime minister Recep Tayyip Erdogan’s government moved to slow down an overheated economy and attempted to bring a gapping current account surplus under control, ahead of membership talks with the EU.
The gross national product (GNP) grew 5.3% in Q1 2005, down from the blistering 12.4% rise in Q1 2004, according to the State Institute of Statistics. Buttressed by an upswing in foreign trade and domestic spending, Turkey’s economy expanded by a torrid 9.9% in January-December 2004.