UPDATE 1-Turkish GDP growth fades to 1.6 pct as lira crisis bites

Revised data showed the economy had expanded 5.3 percent year-on-year in the second quarter, from a previously reported 5.2 percent.

Turkish economic growth dwindled to 1.6 per cent year-on-year in the third quarter, official data showed on Monday, falling short of forecasts as a lira crisis and soaring inflation took its toll on the economy.

The major emerging market economy grew more than 7 per cent last year but a slowdown to just over 5 per cent in the second quarter has accelerated in the second half as a slide in the lira currency begins to bite.

In a Reuters poll, economists had forecast third quarter growth of 2.0 per cent year-on-year. The lira eased to 5.3047 against the dollar after the data from 5.2950 beforehand.

Third quarter GDP shrank a seasonally and calendar-adjusted 1.1 per cent from the previous quarter, data from the Turkish Statistical Institute showed.

Revised data showed the economy had expanded 5.3 per cent year-on-year in the second quarter, from a previously reported 5.2 per cent.

The lira has slumped 28 per cent against the dollar this year but has rebounded from record lows in August when it was as much as 47 per cent weaker against the U.S. currency.

The lira crisis sent annual inflation to more than 25 per cent in October, its highest rate in 15 years, before easing in November.