Turkey hopeful of economic revival

Turkey's economy minister, Ali Babacan, said he expects a three to four per cent contraction in the economy in the third quarter, but added it is likely the economy will return to positive growth in the final quarter.

Turkey was hit hard by the global crisis and its economy shrank by 10.5 per cent in the first six months, after growing on average six per cent in recent years.

"Perhaps we will see a minus three to four per cent in the third quarter. The probability that we return to positive growth in the fourth quarter looks very big," Ali Babacan said.

Babacan said technical negotiations continued with the International Monetary Fund on a loan deal.

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