IB Macroeconomics IA (7점)

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Turkey went into recession at the end of last year, according to the country's official statistics office.

The Turkish Statistical Institute said th​e economy​ shrank by 2.4% in the fourth quarter of 2018, from the previous quarter​.

It followed a 1.6% drop the previous quarter, making two quarters of falling growth - the definition of recession.

A trade war with the US sparked a steep fall in Turkey's currency, making imports far more expensive.

The two countries are opposed​ on a range of issues including how to fight the Islamic State group in alleged plotters of a failed coup in Turkey in 2016 which attempted to topple President Recep Tayyip Erdogan.

Turkey also wants the extradition of a Turkish cleric now living in the US who it has charged with terrorism and espionage.

Turkey's lira fell by 30% against the dollar last year, making imports on average a third more expensive.

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