Turkey Economy Slides Into Recession Ahead of Rates Decision
- GDP contracts for second straight quarter as growth sputters
- Central bank has persisted with 50% rates to control inflation
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Turkey entered a technical recession in the third quarter as industrial production plunged, providing more evidence to the central bank as it ponders whether to start cutting interest rates next month.
The $1.3 trillion economy shrank by 0.2% quarter-on-quarter, the second consecutive decline after the previous period was revised to a contraction, according to data released by the state statistics agency on Friday. Third-quarter annual growth came in at 2.1%, below the 2.5% expected by economists surveyed by Bloomberg.