The Turkish construction sector performed above expectations in H--- and as such we have increased our full year expectations for growth to -.- y-o-y. For ---- we forecast -.- , meaning growth in both this year and next will be lower than our average growth forecasts up to ----. ...� The attempted coup against Turkey s ruling Justice and Development Party (AKP) on July -- significantly raised political and economic uncertainty over the country s political trajectory. The government s response to the coup will exacerbate some of the negative trends which are damaging Turkey s business and investment climate, although we note that the government will remain committed to supporting the infrastructure sector. � Despite the turmoil of in ----, a number of major projects have progressed in the highways sector. ...� Despite the turmoil of in ----, a number of major projects have progressed in the highways sector. External project sponsors, such as the EBRD, made clear their intention to continue to invest in the
...Turkey is likely to have experienced volatile construction sector real growth over ----. H--- saw strong growth of -.- y-o-y, but we expect this rate to have slowed significantly in the second half of the year as a result of negative investor sentiment following the coup attempt, as well as a number of major projects reaching completion. We now forecast real growth of -.- y-o-y in ---- and -.- in ----, noting that high operational risks, weakening institutional quality and persistent macroeconomic imbalances remain key limitations on the sector s potential growth rate. On the other hand, significant government support for the construction sector and strong demand dynamics mean that Turkey will remain an important market for emerging market infrastructure investors thanks to a continued focus on the delivery of major projects through the use of public-private partnerships (PPPs). PPPs will be supported by government guarantees and well structured deals. ...On the other hand, significant government support for the construction sector and strong demand dynamics mean that Turkey will remain an important market for emerging market infrastructure investors thanks to a continued focus on the delivery of major projects through the use of public-private partnerships (PPPs). PPPs will be supported by government guarantees and well structured deals.
...After a strong H---, we expect the construction sector to slow significantly over the second half of the year. Nonetheless given the strength in the first half we have upped our expectations for growth in ---- to -.- , while our ---- forecast remains unchanged at -.- y-o-y. ...
