ISTANBUL: Growth in Turkey’s economy slowed to 1.7 per cent year-on-year in the third quarter, data showed on Wednesday, sharply below a Reuters poll forecast of 3.0 per cent.
Output grew 0.4 per cent from the previous quarter on a calendar-adjusted basis, the Turkish Statistics Institute said.
The figures heightened prospects of growth being well below the government’s 4 per cent target for 2014. Before Wednesday’s data, the Reuters poll forecast full-year growth of 3.1 per cent.
They also dented sentiment in financial markets, with the lira easing to 2.675 against the dollar from 2.2610 beforehand. The main share index trimmed gains to 0.37 per cent from 0.66 per cent.
Turkey’s ruling AK Party has a strong record on the economy and can ill afford a slowdown ahead of a parliamentary election next June. It has exerted pressure on the central bank to lower interest rates.
The institute revised growth to 2.2 per cent from 2.1 per cent for the second quarter when GDP was hit by drought-affected agricultural output, weakness in European export markets and wars in Ukraine and Iraq.
