The Turkish economy grew 3.7% year-on-year in the third quarter, official data showed on Monday, slowing down the pace of expansion as agricultural activity tumbled, while tight monetary policy and a slowdown in demand also weighed on the output.
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 (TurkStat) showed.
The big emerging market economy expanded by 4.9% in the second quarter of the year, a figure slightly revised from the previously announced 4.8%, the data showed.
The drag on economic activity in the July-October quarter came from the agriculture, forestry and fishing sector, which shrank 12.7%. Meanwhile, the construction sector activity surged 13.9%.
In a Reuters poll, the economy was forecast to have grown by 4.2% in the third quarter.
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.
