Turkish economy surges 11.1% in third quarter

Istanbul: Turkey's economy grew at a blistering 11.1 per cent in the third quarter for its fastest expansion in six years, data showed on Monday, handily beating forecasts due to government incentives and the base effect after last year's failed coup.
After the data was released, Development Minister Lutfi Elvan forecast 2017 growth would be in a band of 6 to 7 per cent.
Following last year's failed putsch, which led to a 0.8 per cent contraction in the third quarter, the government ramped up its stimulus measures including the use of its Credit Guarantee Fund, and changes to tax regulation.
The data beat a forecast of 10 per cent growth in a Reuters poll. Third-quarter GDP expanded a seasonally and calendar adjusted 1.2 per cent from the previous quarter, the data showed.
Second-quarter growth was revised up to 5.4 per cent from an initially reported 5.1 per cent, while first-quarter growth was also slightly revised up, to 5.3 per cent.
The data showed annual growth of 20.7 per cent in the services sector and 18.7 per cent in the construction sector, with industry expansion of 14.8 per cent.
The Credit Guarantee Fund guarantees loans to small and medium-sized enterprises that could not otherwise get credit. It has backed some 221 billion lira ($57.39 billion) worth of loans so far, after its size was increased by more than ten-fold to 250 billion lira in March.