Türkiye 2024 GDP Growth 3.2%, Exceeding Forecast

People walk on the Galata Bridge after a snowfall in Istanbul, Türkiye, Friday, Feb. 21, 2025. (AP Photo/Emrah Gurel)
People walk on the Galata Bridge after a snowfall in Istanbul, Türkiye, Friday, Feb. 21, 2025. (AP Photo/Emrah Gurel)
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Türkiye 2024 GDP Growth 3.2%, Exceeding Forecast

People walk on the Galata Bridge after a snowfall in Istanbul, Türkiye, Friday, Feb. 21, 2025. (AP Photo/Emrah Gurel)
People walk on the Galata Bridge after a snowfall in Istanbul, Türkiye, Friday, Feb. 21, 2025. (AP Photo/Emrah Gurel)

Türkiye's economy grew 3.0% year-on-year in the fourth quarter of 2024, bringing full-year growth to 3.2%, official data showed on Friday, exceeding forecasts despite the weight of high interest rates.

Türkiye's government, which had initially projected 3.5% growth for 2024, had trimmed its expectations to reflect ongoing adjustments in domestic demand and efforts to slow inflation.
Fourth-quarter gross domestic product rose 1.7% from the previous quarter on a seasonally and calendar-adjusted basis, Turkish Statistical Institute (TUIK) data showed.

The economy suffered a technical recession last year after successive drops in growth in the second and third quarters.

In a Reuters poll, the economy was forecast to have expanded 2.6% year-on-year in the fourth quarter and by 3% in 2024 as a whole.

Analysts said in the poll that growth remained fairly steady largely due to strong demand in some areas and some production trends, despite tight monetary policy.

Economists forecast 3.1% growth in 2025, significantly lower than the 5.1% recorded in 2023, the poll showed, reflecting the effect of a series of sharp interest rate hikes that started in mid-2023.

The central bank raised its benchmark rate by 4,150 basis points to cool inflation, bringing the rate to 50% in March 2024. The shift to orthodox policy, after years of low rates aimed at fostering growth, weighed on domestic demand.

After cuts of 250 basis points in both December and January, the rate is now 45%, and expected to fall to 30% by year-end.



Gold Gains over 1% as Dollar, Yields Ease; Spotlight on Trade

A gold seller arranges gold bracelets at a gold shop in Bangkok's Chinatown, Thailand, January 27, 2025. REUTERS/Chalinee Thirasupa/ File Photo
A gold seller arranges gold bracelets at a gold shop in Bangkok's Chinatown, Thailand, January 27, 2025. REUTERS/Chalinee Thirasupa/ File Photo
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Gold Gains over 1% as Dollar, Yields Ease; Spotlight on Trade

A gold seller arranges gold bracelets at a gold shop in Bangkok's Chinatown, Thailand, January 27, 2025. REUTERS/Chalinee Thirasupa/ File Photo
A gold seller arranges gold bracelets at a gold shop in Bangkok's Chinatown, Thailand, January 27, 2025. REUTERS/Chalinee Thirasupa/ File Photo

Gold prices gained over 1% on Monday as the dollar and US bond yields weakened amid uncertainty over trade talks ahead of a US deadline of August 1 for countries to strike deals or face more tariffs.

Spot gold was up 1.2% at $3,390.79 per ounce at 9:52 ET (1352 GMT). US gold futures were up 1.3% to $3,402.40.

The US dollar index was down 0.4%, making dollar-denominated gold more affordable for buyers using other currencies, while benchmark 10-year U.S. Treasury yields hit a more than one-week low, Reuters reported.

"With the August 1st deadline looming, it brings a level of uncertainty to the market and that certainly is supportive," said David Meger, director of metals trading at High Ridge Futures.

The European Union is exploring a broader set of possible counter-measures against the US as prospects for an acceptable trade agreement with Washington fade, according to EU diplomats.

On the interest rate front, traders are pricing about a 63% chance of a rate cut in September, according to the CME FedWatch Tool.

U.S. Treasury Secretary Scott Bessent said the entire Federal Reserve needed to be examined as an institution and whether it had been successful.

Talk of earlier than expected U.S. rate cuts is building, with speculation around a possible replacement of Fed Chair Jerome Powell and reshaping of the Fed adding to market jitters, Meger said.

Gold is considered a hedge against uncertainty and tends to perform well in a low interest rate environment.

Data showed that the world's leading gold consumer, China, brought in 63 metric tons of the precious metal last month, the lowest amount since January. Its imports of platinum in June fell 6.1% from the prior month.

Spot silver gained 1.8% to $38.86 per ounce, platinum rose 2.2% to $1,453.17 and palladium was 3.5% higher at $1,284.46.