Türkiye’s economy grew by 3.7% annually in the third quarter, official data showed on Monday, falling short of expectations as agricultural activity tumbled, while tight monetary policy and a slowdown in demand also weighed.
The drag on economic activity was down to the agriculture, forestry and fishing sector, which shrank 12.7%. Meanwhile, construction sector activity surged 13.9%.
Third-quarter gross domestic product (GDP) grew 1.1% from the previous quarter on a seasonally and calendar-adjusted basis, data from the Turkish Statistical Institute showed.
In a Reuters poll, the economy was forecast to have grown by 4.2% in the third quarter and was expected to grow by 3.6% in 2025 as a whole.
The big emerging market economy expanded by a slightly revised up 4.9% in the second quarter and 2.5% in the first quarter. In 2024 as a whole it grew 3.3%.
Economists had said a slowdown in private consumption as well as softer net exports would impact the third quarter figure.
In December last year, the central bank started cutting interest rates after having kept the main policy rate steady for eight months. Since July the central bank has cut rates by 650 basis points to 39.5%.
Inflation has dipped to around 33% from as high as 75% in May last year.
