Turkey’s economy contracted less than expected in the second quarter of the year, according to official data showing a strong recovery in household spending that economists said would help the country emerge, albeit slowly, from recession.

Gross domestic product fell 7 per cent year on year in the three months to June, against expectations of an 8.2 per cent drop. Figures for the first quarter were revised down to show a year on year contraction of 14.3 per cent.