Can the Turkey ETF Overcome Its Challenges?

The latest projection from the Organization for Economic Cooperation and Development has placed a dime view upon Turkey, with contraction anticipated and related shares and ETFs left vulnerable.

As private investment has waned because of the poor economy, exports in Turkey are forecast to plunge 12%. But in better news, if the Central Bank cuts interest rates, the economy may grow 2.6% next year, reports Hurriyet. In order to win over investors, the government must keep spending under control.

The OECD is predicting a 5.9% contraction in 2009, and for now, Turkey has put off signing the IMF loan agreement, reports Ben Holland for Bloomberg. Despite the gloomy numbers, the IMF Managing Director believes that consumer sentiment is up in Turkey and manufacturing and employment have resumed, reports Lesley Wroughton for Forbes.

Over the long term, Turkey will need fiscal adjustments and expenditure cuts to help public finances sustain.

• iShares MSCI Turkey Investable Market Index (TUR): up 41.4% year-to-date

Comments

[bigmoney:]

yahoo shows the Turkey ETF to be 54% financials. Aren't these just banks? Materials and Telecom come in 2nd & 3rd with 15% and 13%. So banks are like a black hole sucking in all available capital.

Jul 01 12:46 AM

[keithpiccir...:]

Barring geopolitical risk, oil should now go back down, and being an importer, manufacturers should continue to do quite well.

Jul 09 07:09 PM