Turkey Economy Books Faster Growth

By Joshua Kirby

The Turkish economy grew at a faster pace at the start of the year, suggesting tight monetary policy aimed at taming rampant inflation isn't yet having a damping effect.

Gross domestic product was 5.7% higher over the first three months of 2024 than it was in the first quarter last year, official figures showed Friday. This marks an acceleration from the end of 2023 and the second-largest increase in a little under two years. Economists had expected a slightly faster rate of growth over the quarter, according to a consensus of estimates provided by FactSet.

Continued dynamism in the Turkish economy may worry the central bank, which last year embarked on a series of interest-rate hikes aimed at bringing inflation under control and propping up a limping lira. Consumer prices have accelerated for the last half-year straight, and the bank may have to resort to fresh cuts if strong household spending and wage rises continue to hamper efforts to reduce inflation.

Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby

(END) Dow Jones Newswires

May 31, 2024 03:30 ET (07:30 GMT)

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