Turkey’s Economy Stalls as High Interest Rates Take Toll

  • Annual GDP growth slowed to 2.5%, far more than expected
  • Economy stalled on a quarterly basis with 0.1% growth
Crowds on a busy market street in Istanbul.Photographer: Moe Zoyari/Bloomberg
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Turkey’s $1.2 trillion economy slowed by more than analysts expected in the second quarter, highlighting the impact of higher borrowing costs.

Gross domestic product grew by 2.5% year-on-year, compared with 5.3% the previous three-month period, Turkey’s state statistics agency said on Monday. Economists in a Bloomberg survey were expecting annual growth of 3.2%.