Turkey’s Economy Expands More Than Forecast in Second Quarter

Turkey’s economy expanded more than estimated in the second quarter as public spending surged and household consumption remained strong.

Gross domestic product expanded 3.8 percent in the April-to-June period, compared with a revised 2.5 percent in the previous quarter, the statistics agency said on Thursday. That compared with a median estimate of 3.1 percent in a Bloomberg survey of 16 analysts. Seasonally-adjusted output rose 1.3 percent from the previous quarter.

Household demand, which makes up roughly two-thirds of GDP, grew 5.6 percent in the second quarter while public consumption expanded 7.2 percent, compared with a 2.5 percent gain in the previous quarter.

The lira pared losses after the data release and was trading at 3.0435 per dollar at 10:12 a.m. in Istanbul.