Turkey mulls new stimulus measures

ANKARA: President Tayyip Erdogan´s government is considering further stimulus measures to address an expected slowdown in growth in coming quarters, two officials said, a move that could heighten concerns that fiscal policy will be loosened.

The economy expanded at a breakneck 7.4 percent last year, boosted by government stimulus and domestic consumption, although analysts have warned growth was uneven and not sustainable.

Erdogan, a self-described "enemy of interest rates", has pushed banks to lend more to boost private spending.

In the aftermath of a failed coup in 2016, the government boosted the size of the fund that backs loans to companies, to 250 billion lira ($52 billion).

It has also introduced measures to increase employment. "Certain steps may be taken to realise higher growth. This issue is on the agenda," one of the officials said, without elaborating on what that could entail.