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The Turkish economy grew by 3.9% during the third quarter

Ankara (Reuters)

Official data yesterday showed that the Turkish economy grew by 3.9 percent in the third quarter year-on-year, a rate slightly lower than expected and slower than it achieved at the start of the year, as domestic demand and external was affected by high inflation and the global slowdown.
According to data from the Turkish Statistical Institute, gross domestic product contracted by 0.1 percent compared to the previous quarter, net of seasonal factors and for calendar reasons.
A Reuters poll had forecast that the economy would grow 4% year over year in the third quarter. The survey expects full-year growth of 5% after a strong performance in the first half when the economy grew more than 7.5%.
The data showed revised annual growth in the second quarter of 2022 to 7.7% from 7.6%.
Analysts had expected a slowdown in growth in the second half following a downward trend in domestic and foreign demand following a slowdown in Turkey’s major trading partners.
To counter the slowdown, the Turkish central bank initiated an expansionary monetary policy cycle between August and November, cutting interest rates by 500 basis points to 9%.
Last year, the Turkish economy saw a strong recovery from the levels during the Corona pandemic and grew by 11.4%, registering the highest growth rate in a decade.
President Recep Tayyip Erdogan’s economic program over the past 14 months has made growth and exports a top priority and has sought to curb inflation by reducing chronic current account deficits rather than raising interest rates.
A round of monetary policy easing last year resulted in the lira ending the year down 44% against the dollar and shedding another 29% this year, pushing inflation to a 24-year high by more than 85% in October.

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