Turkey's economic confidence index tumbled more than 18 percent to a record low in December, data showed on Thursday, pointing to an even more pessimistic outlook after the economy shrank 1.8 percent in the third quarter. The index, a broad measure of sentiment about the economy, dropped to 70.52 points in the final month of the year from 86.55 a month earlier, the Turkish Statistics Institute said.

It was the lowest level since the institute began compiling the data in January 2012. The index indicates an optimistic economic outlook when above 100 and a pessimistic one when below 100. In November, the index had risen 7.4 percent to 86.55. Negative sentiment towards Turkey has been reflected in sharp declines in the lira's value this year, with the currency dropping as much as 19 percent against the dollar.

It was at 3.5345 at 0910 GMT on Thursday compared with 2.9185 at the end of 2015.

The Tourism Ministry said on Thursday that the number of foreign visitors arriving in Turkey dropped 21.35 percent to 1.35 million in November. Tourism, which adds about $30 billion to gross domestic product each year, has been hammered by a spate of bombings blamed on Islamic State and Kurdish militants and by a diplomatic standoff with Russia which erupted more than a year ago. Moscow and Ankara agreed in August to normalise ties.

Separately, the labour minister told reporters that Turkey will increase the minimum wage by about 8 percent next year to a monthly net minimum wage of 1,404 lira ($397). Consumer price inflation is forecast to be just over 8 percent at the end of next year, according to a central bank survey.

Copyright Reuters, 2016