Turkey, a major emerging economy once perceived as a rising star by international investors, entered a technical recession (two consecutive declining quarters) in the second half of last year after the Turk-ish lira depreciated by 30% against the dollar and borrowing costs have risen, BBC and Reuters report.

Turkey’s GDP contracted by 2.4% in the fourth quarter of 2018, after a decline of 1.6% in the previous three months, according to data released by the National Institute of Statistics (Turkstat).

Overall, last year, the economy advanced by 2.6%, compared with an expansion of 7.4% in 2017. The 2018 growth is the worst performance after 2009, according to Agerpres.

The construction sector, which has long benefited from the lending boom in Turkey, contracted by 8.7% in the fourth quarter of 2018, while industry declined by 6.4%. Consumer spending fell by about 9% after the inflation rate reached the highest level in the last 15 years, and the high borrowing costs have affected the investment outlook