ISTANBUL: Turkey's economy grew 7.3% year-on year in the first quarter, slightly more than expected according to official data on Tuesday, driven by strong demand, manufacturing and exports.

Gross domestic product (GDP) expanded 1.2% compared with the previous quarter on a seasonally and calendar-adjusted basis, data from the Turkish Statistical Institute showed.

In a Reuters poll, the economy was forecast to have expanded 7.1% in the first quarter with full-year growth seen at 3%, as a rise in energy prices due to war in Ukraine weighs on the current account, budget and inflation outlooks.

Last year, Turkey's economy bounced back from the COVID-19 pandemic to grow 11%, its highest rate in a decade.

President Tayyip Erdogan's economic plan prioritises growth, employment, investment and exports, driven by a series of unorthodox interest rate cuts that sparked a currency crisis and inflationary spiral late last year.

(Reporting by Can Sezer and Nevzat Devranoglu; Editing by Jonathan Spicer)