Goldman Sachs trims Turkey 2022 growth forecast, lira slide to impact "significantly"

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A crumpled Turkish Lira banknote is seen in this illustration taken October 25, 2021. REUTERS/Dado Ruvic/Illustration

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LONDON, Nov 30 (Reuters) - Goldman Sachs said on Tuesday it had revised Turkey's 2021 growth forecasts up to 10.5% from 9.5% and trimmed its 2022 predictions by half a percentage point to 3.5%.

Data released earlier on Tuesday showed that Turkey's economy grew 7.4% year-on-year in the third quarter, meeting expectations on the strength of retail demand, manufacturing and exports but the figures failed to ease concerns about policy settings. read more

"We think that the GDP figures released today tell us little about the pace of economic activity going forward as the recent sell-off in the Lira is likely to impact economic activity significantly," said Goldman Sachs' Murat Unur.

Turkey's lira dipped to 13 to the dollar on Tuesday, resuming its slide towards last week's record low. read more

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Reporting by Karin Strohecker Editing by Tommy Wilkes

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