Turkey's economy shrank by 13,8% in the first quarter of 2009 year-on-year as foreign trade contracted sharply amid the global recession.

The Turkish Statistics Institute announced Tuesday the statistics without offering any explanation.

However, economists say that the hardest hit have been trade with statistics showing a 25,4% contraction in the first quarter.

The government has been arguing that the country's economy will not be seriously affected from the global financial crisis but the statistics showed that it has already taken a serious toll.

Turkey has been unable to reach an agreement with the International Monetary Fund for several months for a new loan deal.

New talks with the IMF began in January but differences over the conditions attached to the loan limited any progress.

Tuesday's statistics showed that the state's spending increased to 11,1% of gross domestic product in the first quarter compared to 9% in the same quarter in 2008.

Analysts say the Turkish economy is likely to contract more than 5% by the end of 2009.

The unemployment in Turkey climbed to 15,8 % in March, as companies struck by the global economic crisis continued to lay off workers. The jobless rate was 11% in the same period in 2009.

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