TURKEY’S economy expanded faster than China and India last year thanks to a surge in spending both by households and the government.

    Gross domestic product rose 7.4 percent in 2017, with fourth-quarter output up 7.3 percent, Turkstat reported, beating the median 6.7-percent estimate in a Bloomberg survey. Seasonally adjusted output rose 1.8 percent from the previous three-month period, also beating estimates.

    Turkey has rebounded from a slump that followed the failed military coup in July 2016 to become one of the fastest-growing G20 economies. The trend is likely to continue this year, according to Aktif Yatirim Bankasi chief economist Ozlem Yetkin, with households continuing to spend on everything from appliances to food and health care.

    By comparison, China and India grew 6.9 percent and 7.1 percent respectively last year, according to official data.

    “Households were the biggest contributor and going forward, consumption growth will remain solid in 2018” assuming no increase in financial volatility or the recent slump in the lira becoming prolonged, said Yetkin. She expects household spending to be near the government’s 5.5-percent growth target this year.

    But Turkey’s rapid growth has also drawn a warning from the International Monetary Fund, which said last month that Turkey’s current-account gap could widen due to strong domestic demand and higher oil prices. (SD-Agencies)