ANKARA – Turkey’s economy grew 3.9 percent year on year in the third quarter, expanding at the slowest rate since the second quarter of 2020, the Turkish Statistical Institute data announced on Wednesday.
The limited growth in consumption compared to the second quarter and the slowdown in foreign demand contributed to the decrease in the growth rate.
Gross domestic product (GDP) narrowed 0.1 percent from the previous quarter on a seasonally and calendar-adjusted basis, the data showed.
Consumption expenditures of resident households increased by 19.9 percent as a chained volume index in the third quarter of the year compared to the same period of the previous year. While the final consumption expenditures of the government increased by 8.5 percent, the gross fixed capital formation decreased by 1.3 percent.
The country’s economic growth is overshadowed by its annual inflation rate which reached a 20-year high of 85.5 percent in October.
Turkish central bank said last week that it has ended the easing cycle between August and November, during which it lowered the policy rate by 500 basis points to 9 percent.