Attacks may hurt Turkey's economy
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HSBC's Istanbul headquarters was shattered by the blast.
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Chaos after explosions hit Istanbul
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LONDON, England -- Turkey's economic recovery may be stifled if the current wave of terrorist attacks continues, analysts say.
Despite a strong year, experts worry about the impact of the recent bombings on the country's efforts to get the economy humming again. Four blasts in less than one week have left more than 50 people dead and hundreds wounded.
The economy declined more than 9 percent in 2001, but since then it's been growing thanks to a $16 billion International Monetary Fund reform program. Inflation is now at its lowest level since the early 1970s, allowing the central bank to cut interest rates.
"It's in recovery mode," said Debbie Orgill of ABN Amro. "Next year we're looking for growth of around 4 percent, but the spate of bombs could see some of the growth capped. It could delay the domestic recovery."
One sector that may be affected is the tourism industry, Turkey's second biggest cash generator after exports.
Dwyfor Evans, an emerging markets strategist at Bank of America, told CNN he remains optimistic.
"Turkey depends quite significantly on its tourism sector. It's the low season for tourism. So, assuming there are no future bombings, the impact on the balance of payments from tourism should be kept to a minimum," Evans said.
But the English football club Chelsea has already taken action. It has told supporters they will not be able to buy tickets for a match taking place in Istanbul in December.
The club said the safety of its fans was in jeopardy because British interests had been targeted. Thursday's attacks hit the British consulate and HSBC headquarters in Istanbul.
Such fears may also hit UK investment in Turkey. Security experts say the bombings are a wake-up call for British businesses abroad.
David Claridge from Risk Advisory Group told CNN: "This is the first attack against British interests since 9/11, the first attack against a British company, and that of course brings into focus the risks companies face."
