Turkish economy grew by 2.1% in the third quarter of 2024, according to the latest data released by the Turkish Statistical Institute (TÜİK), which shows Turkey’s GDP growth below expectations largely due to the Central Bank’s monetary policies to contain inflation.
The report released on Friday by TÜİK indicates that Gross Domestic Product shrank by 0.2% compared to the second quarter, with demand slowing between July and September especially in the services sector, due to high interest rates. Imports also fell by 9.6% due to the fall in demand, while exports of goods and services grew by 0.8% compared to the third quarter of last year.
The growth figure released by Turkey’s official statistics agency is well below analysts’ forecasts, who had expected the Eurasian country’s economy to grow by around 2.6% after growing by 2.4% in the second quarter, according to the latest revised figure.
Much of this cooling of the Turkish economy is due to the high interest rates maintained by the Turkish Central Bank since the beginning of 2024, set since last March at 50% to contain inflation, which fell to 48.58% in October after reaching 75.45% in May. By the end of this year, the Turkish Central Bank forecasts in its latest report that the CPI will reach 44%, falling to 21% by the end of 2025; previously, it had expected inflation to be 38% and 14% by the end of 2024 and 2025, respectively.
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Edited and reviewed by:
Pablo Gómez is a specialist in Turkey and has been editor-in-chief of Hispanatolia since 2011. He has been analysing current affairs and geopolitics in Turkey and the surrounding region since 2006.
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