Turkish economy grew 2.1%, less than expected as policy weighs
2024.11.29 03:22
ISTANBUL (Reuters) -Turkey’s economy grew at a less than expected 2.1% rate in the third quarter as demand ebbed especially in the services sector under the weight of high interest rates, official data showed on Friday.
Third-quarter gross domestic product (GDP) dipped by 0.2% from the previous quarter on a seasonally and calendar-adjusted basis, Turkish Statistical Institute (TUIK) data showed.
Annual growth in the second quarter was revised down to 2.4% from 2.5%, the data also showed.
In a Reuters poll, the economy was forecast to have expanded 2.6% in the third quarter due to slower domestic demand. Full-year growth is seen at 3% based on the poll’s median.
The major emerging market economy has cooled in the face of a monetary tightening campaign that began in June 2023. The central bank has since hiked rates to 50% from 8.5% in order to lower inflation, which was above 48% last month.
Services-related activity pulled overall GDP lower in the latest quarter, while construction and financial services remained elevated on an annual basis, the data showed.
Turkey’s trend GDP growth has been between 4%-5% in recent years.
