ANKARA, Nov. 29 (Xinhua) -- Türkiye's economy registered a slower-than-expected annual growth of 2.1 percent in the third quarter, official data showed on Friday.
The tightening measures implemented this year have slowed the country's growth momentum, and the annual growth rate fell short of the forecasted 2.5 percent.
According to the Turkish Statistical Institute, the gross domestic product (GDP) shrank by 0.2 percent from the previous quarter on a seasonally and calendar-adjusted basis, marking the second consecutive contraction and confirming a technical recession.
The third quarter marked a period heavily influenced by the central bank's efforts to combat high inflation through interest rate hikes. Since June 2023, the central bank has aggressively raised interest rates from 8.5 percent to 50 percent to tackle inflation, which eased to 48.58 percent in October.
On an annual basis, industrial output declined by 2.2 percent in the third quarter, while the services sector grew by 1.9 percent, agriculture by 4.6 percent, and construction by 9.2 percent. This period also recorded the slowest annual growth rate since the COVID-19 pandemic.
Turkish Treasury and Finance Minister Mehmet Simsek described the economic growth as moderate and balanced, aligning with expectations during the disinflation phase.
"With reduced inflation, increased predictability, recovery in trade with our partners, improvements in global trade, and favorable global financial conditions, we anticipate economic activity to gain momentum starting in the second half of next year," Simsek said on the social media platform X on Friday. ■
