In addition to the macroeconomic outlook in Europe, a special section is dedicated to the recent developments in the Turkish economy.
Down side risks exist particularly in Italy due to the latest bout of political instability. A no-confidence vote against the government in Spain, and the subsequent political developments has further raised the risks of Eurozone instability with spikes in both Italian and Spanish bond yields at the end of May.
The Turkish economy continued to grow at a significant pace of 7.2% in the first quarter of 2018, compared to 7.4% in the previous quarter. However, leading indicators and market conditions indicate a slowdown for the period ahead.