The Turkish economy shrank by nearly 2% in the third quarter as consumer spending and exports plunged, data showed today.

This marked the first year-on-year contraction in 27 quarters since 2009.

The Turkish Statistics Office said gross domestic product (GDP) fell 1.8% compared with the same period in 2015. The news caused an immediate fall in the lira.

The contraction follows weaker consumer spending which the office said decreased by 3.2% in the last quarter while exports of goods and services fell by 7%.

The release is one of the strongest signs yet that political instability in the aftermath of the July 15 coup bid is affecting consumer confidence.

The last time Turkey recorded negative growth was in 2009 when the country entered recession.

Today's figures also come as the country's tourism industry is under severe strain after multiple terror attacks blamed on Islamic State jihadists and Kurdish militants and the July 15 failed coup.

In the latest attack on Saturday, twin bombings ripped through Istanbul, killing 38 people, mostly police and were later claimed by the Kurdistan Freedom Falcons (TAK), seen as a radical offshoot of the outlawed Kurdistan Workers' Party (PKK).