ISTANBUL (Reuters) – Turkey’s economy grew 5.7% in the first quarter of the year, in line with expectations, official data showed on Friday, growing strongly as domestic demand boosted the economy.
In a Reuters poll, the economy was forecast to have expanded 5.7% in the first quarter. The poll predicted growth of 3.15% in 2024 as a whole.
Growth is expected to slow during the rest of the year as the central bank’s aggressive monetary tightening in the face of soaring inflation exerts an impact.
Turkey’s economy grew an annual 4.5% in 2023 and 4% in the first quarter of that year despite a slowdown in main trading partners and devastating earthquakes in February.
The central bank raised its policy rate by a total 4,150 basis points in a tightening cycle since last June, the latest one to 50% in March, citing deterioration in the inflation outlook. It has kept the benchmark…
