Türkiye's economy expanded at a less than expected 2.1% rate in the third quarter, official data showed on Friday, as demand ebbed especially in the services sector under the weight of high interest rates.
The July-September gross domestic product (GDP) dipped by 0.2% from the previous quarter on a seasonally and calendar-adjusted basis, Turkish Statistical Institute (TurkStat) data showed.
Annual growth in the second quarter was revised down to 2.4% from 2.5%, the data also showed.
The economy was forecast to have expanded 2.6% in the third quarter due to slower domestic demand.
The major emerging market economy has cooled in the face of a monetary tightening campaign that began in June 2023.
The central bank has since hiked rates to 50% from 8.5% in order to lower inflation.
Annual inflation eased down to 48.58% in October from a peak of 75.45% in May.
Earlier this month, the central bank raised its year-end inflation forecasts for this year and next to 44% and 21%, respectively. It previously forecast year-end inflation of 38% in 2024 and 14% next year.
The government anticipated end-2024 and end-2025 inflation of 41.5% and 17.5%, respectively.
Services-related activity pulled overall GDP lower in the latest quarter, while construction and financial services remained elevated on an annual basis, the data showed.
Türkiye's trend GDP growth has been between 4%-5% in recent years.
