Turkish Economy Is Skirting Recession Even as Rates Shoot Up
- Quarterly economic growth probably remained just above zero
- Central bank ended rate hikes but may consider more tightening
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Turkey’s $1.1 trillion economy probably eked out growth again, avoiding a contraction during a two-quarter stretch when the central bank delivered the bulk of its massive interest-rate hikes.
The pivot toward tighter monetary policy since June has put restraints on consumption that accounts for more than half of gross domestic product. With a sharp deceleration in lending and quarterly retail sales growth barely above zero, the goal is to engineer a slowdown in inflation swollen from an era of cheap money.