Gross domestic product (GDP) grew by just 0.1% in the first quarter, seasonally adjusted, according to data released on Monday. That’s well below the 0.4% rate recorded in the previous quarter and fell short of the forecasts of economists surveyed by Bloomberg. The median value of their forecasts was 0.3% growth.
Annualized GDP growth was 2.5% in the first quarter, down from 3.4% in the previous period. Earlier this year, Turkey’s central bank reversed its previous easing policy and raised its key interest rate to control market volatility caused by a massive sell-off in emerging market assets.
Last month, the authority sharply raised its year-end inflation target from 16% to 24%. This was due to high energy and food prices. Before the release of GDP data, some banks speculated that the authorities may consider further interest rate hikes in June.
