Potential for turnaround

▪ FLOATING THE LIRA IS OUT OF THE QUESTION

▪ TOURISM CONTINUES TO DRIVE GROWTH

▪ GOVERNMENT TAKES BELT-TIGHTENING MEASURES

The economic slowdown worsened in the first half of 2019, but the economy will still be able to escape the recessionary trap. Some economic indicators have witnessed an improvement in the first six months of the year compared with the same period in 2018, such as growth in the number of tourists and in international trade. Other indicators have shown a decline, for example the real estate sector and car sales. Investment confidence remained subdued as investment decisions continue to be delayed amid persisting political and economic uncertainties. The banking sector saw a decline in lending to the private sector, while deposits remained relatively