Turkish Economy Surprises With Uplift That Defies Rate Hikes

  • Quarterly GDP gain of 1% was higher than all but one forecast
  • Consumption remains resilient despite long cycle of rate hikes
A high-rise construction site in Ankara, Turkey.Photographer: Ercin Erturk/Getty Images
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Turkey’s $1.1 trillion economy grew much faster than forecast, avoiding a contraction during a two-quarter stretch when the central bank delivered the bulk of its massive interest-rate hikes.

Gross domestic product expanded 1% in the fourth quarter from the prior three months in seasonally and working-day adjusted terms, according to data published on Thursday. That marked a slight acceleration from the third quarter, when GDP expanded just 0.3%.