The Turkish economy grew by 7.3% year-on-year in the first quarter, according to the statistical service Turkstat, although inflation hit a two-decade high in April and the currency depreciated.
Growth in the quarter was supported by private consumption, which rose 19.5% year on year, driven by the lifting of coronavirus restrictions.
Government consumption increased by 0.9% and gross fixed capital formation increased by 1.1%.
Net exports also supported growth, supported by strong export performance, thanks to a weak currency.
Exports of goods and services increased by 16.8%, while imports increased by 2.3%.
Economists say a vicious cycle of high inflation, a further drop in the pound, could seriously hurt future growth.
They also do not expect a change in Turkey’s current monetary policy stance to curb inflation and stabilize the pound.
Source: Capital
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