Turkish Economic Downshift Worse Than Forecast After Rate Hikes
- Quarterly slowdown follows start of monetary tightening cycle
- Erdogan’s reelection set stage for revamp of economic policies
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Turkey’s economy cooled last quarter as the central bank moved to tighten monetary policy after May elections, a pivot that’s turning around sentiment among investors without crashing growth.
Gross domestic product expanded 0.3% from the second quarter in seasonally and working-day adjusted terms, according to data published on Thursday. That’s down from a revised 3.3% in the previous three months and worse than every estimate in a Bloomberg survey of economists, whose median was for 1%.