The Turkish economy grew faster than expected

Despite the currency crisis and high inflation, the Turkish economy grew surprisingly strongly in the second quarter. The gross domestic product increased by 3.8 percent in the April-June period compared to the same period last year, the statistics bureau announced Thursday. Economists surveyed had expected an increase of just 3.5 percent, after a 3.9 percent increase was sufficient in the first quarter.

Government incentives contributed to the growth ahead of the May elections, which President Recep Tayyip Erdogan won. In the past year and a half, it has doubled the minimum wage and spent record amounts on social benefits. As a result, the Turks consumed more, which boosted the economy. “Consumer spending has been exceptionally strong,” said economist William Jackson of Capital Economics. Before the elections, the central bank had cut interest rates for a long time in order to stimulate growth, exports and investment with cheap money.