Investment bank Morgan Stanley indicated that the economy is getting back to normal in Turkey. In its report on the Turkish economy, the bank noted that the latest figures confirmed that the economy is getting back to normal after the spring fluctuations in the spring. The central bank's decision to keep interest rates in tact was the most tangible sign of economic normalisation. The bank also praised strict financial discipline in effect in Turkey: public sector borrowing rate over gross domestic product decreased to 0.8% in 2005, from 17.5% in 2001. Turkey has become a net debt payer for the first time.
Bangko Sentral ng Pilipinas' business expectations survey showed optimism over economic performance for the second half of 2006. The confidence index remained at a positive 21.7%. Optimism was largely based on the oncoming holiday and harvest seasons and expectations of increased remittances from Filipino workers overseas. The services and construction sectors were most bullish. Negative sentiments were based on insufficient demand for goods and services, foreign and domestic competition, unclear economic laws, insufficient liquidity and rising interest rates.
The bank of Thailand's Governor MR Pridiyathorn Devakula yesterday announced that GDP growth in the second quarter of 2006 is expected to be better than the central bank's earlier forecast of 4.7% growth,, but lower than the 6% growth registered during the first quarter of the year. The National Economic and Social Development Board is scheduled to release the GDP figures today.
Peru grew 5.8% in the second quarter of 2006. Growth in the first quarter was 6.3%.