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Turkish economic growth accelerates

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Turkish economic growth accelerates

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Turkey’s GDP grew by an unexpectedly strong 11.7 percent year-on-year in the first three months of this year.

However that was because the economy was in such a bad state in the corresponding period last year.

Growth from the fourth quarter of 2009 was just 0.1 percent.

Growth is expected to moderate in the rest of this year and economists expect the central bank to delay increases in current low interest rates until late in the year.

Industry and Trade Minister Nihat Ergun said he expected GDP growth of six to eight percent in the second quarter and more than six percent for all of 2010.

Turkey has enjoyed a strong bounce-back since its economy contracted 4.7 percent in 2009 and 14.5 percent in the first quarter of last year.

Restraining factors for Turkish growth include the weak outlook for Europe – which buys half of Turkey’s exports – and an uncertain global economy.