A windfall of foreign funds arriving in Turkey and sustained interest in a state-backed deposit scheme have brought some relief for President Tayyip Erdogan's economic plan less than a year before tight elections.
Erdogan's program stressing monetary stimulus, exports and economic growth sent inflation soaring when the central bank slashed interest rates by 500 basis points late last year, setting off a historic currency crash in December.
Even as annual inflation reached 80% last month, straining households and sapping earnings, the government has stuck to its unorthodox plan which it expects will eventually help flip the country's chronic current account deficits to surpluses. Strong exports and tourism have helped to finance a current account deficit which narrowed in June, despite heavy energy costs, according to the latest data.
