Turkey’s Economy Contracts by 9.9% in 2Q 2020; Largest Decline in Over a Decade

Turkey’s gross domestic product (GDP) contracted by 9.9% year-on-year (YoY) in the second quarter of the year (2Q 2020), as reported by the Turkish Statistical Institute, the country’s Government statistical agency, recently.

The decline in GDP, which is the largest contraction seen in over a decade, was attributed to Turkey’s lockdown measures to mitigate the COVID-19 pandemic, which brought its economic activity to a near standstill. Despite this, the decline was slightly lower than the average 11.8% YoY contraction estimated by economists earlier.

Turkey’s economy grew by 4.4% YoY in the first quarter of the year, bolstered by a lending spree prior to the...