Turkey’s Economy Grows 6.7% in Q3

Data showed that Turkey’s economy grew more than expected at 6.7% in the third quarter, to recover after shrinking about 10% in the previous quarter due to the general isolation measures that were imposed to reduce infections during the first wave of the outbreak of the Coronavirus.

This sudden growth, which implies a jump of more than 15% from the previous quarter, may be short. The number of coronavirus cases this month rose to record levels, leading to new restrictions that are expected to limit growth in the fourth quarter of the year.

In a Reuters poll, GDP was expected to grow 4.8% year on year, reflecting a broad recovery in the manufacturing, spending and trade sectors from July to September.

According to data from the Turkish Statistical Institute, financial and insurance activities increased by 41.1% in the third quarter, information and communications by 15%, industry 8% and construction 6.4%.

The impact on the lira was weak, as it declined 0.25% to 7.8395 against the dollar. The data showed that on a quarterly basis and adjusted in light of calendar factors, the GDP for the third quarter grew 15.6% compared to the previous quarter. GDP contracted 9.9% in the second quarter, after growing 4.5% in the first quarter.

Over the year as a whole, the survey predicted that GDP would be flat, with estimates ranging from 0.6% growth to 5% contraction.

The sudden rise in the number of cases and deaths related to the virus in recent weeks has led to a lockdown and other measures that will put pressure on the economy.