"markets Not Pricing The Positive Growth, Await Ankara"

- Turkey's higher than expected economic growth in the first quarter of the year did not have any impact on markets that eyeing Ankara, where formation of a new government going on.

Turkey's economy grew by 2.3 percent in the first quarter of the year, against in the same period of last year, exceeding the expectations at around 1.6 percent, according to the data released by Turkstat on Wednesday.

The better than expected growth data had a limited impact on the market, where dollar fell below 2.74 lira, from 2.75 level and Borsa Istanbul Index rose by 1.23 percent, after the data released.

"Higher than expected first quarter growth may push the growth expectations for the second quarter and full year up" said Gökhan Uskuay, Strategy Manager at Global Securities.

"We have no other problem than the low growth on the economy side. We were expecting the acceleration in the second quarter but the politics overpassed it. The market can not enjoy the higher than expected growth due to the uncertainities on the second half of the year. We can not price any of the better than expected economic data. If the politics would fail to solve the problems, we would face a tsunami; everything depends on Ankara."

The growth mainly depended on the services sector which grew by 4.1 percent in the first quarter and agriculture sector by 2.7 percent, while value added of industry remained unchanged over the same period.