September 2, 2019 / 7:16 AM / 19 days ago

Turkish economy shrinks 1.5% yoy in Q2, less than expected

ISTANBUL, Sept 2 (Reuters) - The Turkish economy contracted 1.5% year-on-year in the second quarter, better than expectations, and it recorded another positive quarter-on-quarter reading as the economy looks to shake off the effects of recession after last year’s currency crisis.

Compared to the first quarter, gross domestic product (GDP) expanded at a seasonally and calendar-adjusted 1.2% pace, its second positive quarter-on-quarter reading in a row, the Turkish Statistical Institute data showed.

The major emerging market economy has a track record of more than 5% growth, but inflation and interest rates soared after the Turkish lira lost some 30% of its value last year, and domestic demand fell sharply.

A Reuters poll forecast a year-over-year shrinkage of 2% in the second quarter - marking its third quarterly contraction in a row - followed by a pick-up in the Turkish economy leading to zero growth in 2019. (Reporting by Birsen Altayli and Behiye Selin Taner; Editing by Jonathan Spicer)

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