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Investing.com -- Turkey’s economic growth slowed to 1.1% quarter-on-quarter in the third quarter of 2025, down from 1.6% in the second quarter, according to the latest GDP data.
The year-on-year growth rate decelerated to 3.7%, falling below the consensus forecast of 4.2%. Despite the slowdown, the economy continues to run at a relatively strong pace.
A breakdown of the data reveals that the slowdown was primarily driven by inventory changes, while both domestic demand and net exports showed improvement during the quarter.
The strengthening of net exports represents a positive development for Turkey’s external economic position, suggesting that policymakers’ efforts to rebalance the economy are beginning to yield results.
The Turkish economy continues to operate in an environment of high real interest rates, with fiscal policy expected to become more restrictive in the coming periods.
Investors will be closely watching the Consumer Price Index (CPI) data scheduled for release on Wednesday, which is expected to show another decline in inflation.
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