Turkeys economy roared to a morethanexpected 6.7 growth rate in the third quarter, as a flood of credit helped it rebound from a 10 contraction in the previous period when lockdowns were imposed to curb the initial coronavirus wave.
The burst of growth, including a more than 15 jump from the previous quarter, may be brief. Coronavirus cases have surged to record levels this month, triggering new restrictions that are expected to limit growth through yearend.
Yet the surprising third quarter strength driven by fiscal stimulus and the lifting of virusrelated restrictions may allow the economy to narrowly avoid a fullyear contraction after having suffered two major slumps in as many years.
Adding to constraints on the Middle Easts largest economy, the central bank hiked rates in November to 15 to contain a plunging lira and doubledigit inflation.
While the economic rebound in Q3 was strong, the next stage of Turkeys recovery will almost certainly be more difficult, said Jason Tuvey of Capital Economics who noted Turkeys worsening virus outbreak.
Financial sector activity soared by 41.1 in the third quarter, information and communication by 15.0, industry by 8.0 and construction by 6.4, according to data from the Turkish Statistical Institute.
In a Reuters poll, gross domestic product was forecast to have expanded 4.8 yearonyear reflecting a broad rebound in manufacturing, spending and trade in the JulySeptember period.
The lira was little moved, up 0.2 at 7.8…