Turkey’s economy outperformed expectations year-on-year in Q1 recording year-on-year GDP growth of 2.3%.
It is a welcome post-election boost for the government, after voters stripped the AK party of its absolute majority.
It may stop some traders who have been selling off their Turkish stocks as well, despite the uncertain political outlook that has been driving prices down.
Shares regained some ground, as did the lira, which has fallen 15% against the dollar this year.
One economist warned GDP growth was maintained by a consumer spending spurt that sapped domestic savings and fed a growing current account deficit, negative arguments brushed aside by the finance minister who insisted Turkey’s fundamentals were “sound”.
April’s Industrial production did beat forecasts, but May’s exports were down 18%.