ISTANBUL—Turkey's economic growth cooled to 5.2% in the fourth quarter, trailing forecasts but suggesting a soft landing for the economy despite lingering risks.

The fourth-quarter data published Monday confirmed the economy grew 8.5% last year after an upward revision to third-quarter data. This was the second-fastest expansion of any economy in the Group of 20 industrial and developing nations, after China.

Monday's official growth figure was below a forecast by economists for a 6.1% expansion from the year-earlier period, but it comes as many of Turkey's neighbors in the Middle East and Europe struggle with political turmoil and bailouts.

Turkey's government trumpeted the figures as confirmation of the ruling AK Party's sound stewardship of the economy, but cautioned that growth would continue to slow in the first half of 2012.

The markets' apparent relief that Turkey's economy is easing was illustrated by the reaction of the lira, which extended gains against the dollar as the figures were published. Stocks rose, while bonds traded moderately higher.