The Turkish economy proves resilient in the fourth quarter of 2013 and grows by 4.4% to reach 4% for the year as a whole. Growth prospects for 2014 are lower, given higher interest rates, a weaker Lira and the domestic political climate. Inflation figures show an increase of 1.13%. Markets react positively to the governing AKP’s win in municipal elections on 30 March, anticipating policy continuity in the short term. PM Erdogan calls for a cut to interest rates, laying down a challenge to the Central Bank to remain independent.