Economics

Turkish Economy Sees Payoff From Stimulus That Destabilized Lira

  • Gross domestic contracted less than forecast by economists
  • Fiscal stimulus, credit push, rate cuts helped contain damage
Photographer: Nicole Tung/Bloomberg
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Turkey’s economy fared better than forecast by analysts as the government contained the damage from the coronavirus pandemic with a campaign of stimulus that came at the cost of destabilizing the lira.

Gross domestic product last quarter shrank 9.9% from a year earlier, the most in over a decade, after a gain of 4.5% in the previous three months, according to data released on Monday. The median of 17 forecasts in a Bloomberg survey was for a contraction of 10.7%.