Turkey Annual GDP Growth Slows to 3.1% in Q2

The Turkish economy advanced 3.1 percent year-on-year in the second quarter of 2016, slowing from a downwardly revised 4.7 percent expansion in the previous period and below market expectations of a 3.4 percent gain. It is the lowest growth rate in five quarters as household spending and exports slowed and investment shrank.

Household consumption rose at a slower 5.2 percent (7.1 percent in Q1) while government spending jumped 15.9 percent (10.9 percent in Q1). In contrast, investment shrank 0.6 percent, after being flat in Q1. Main disinvestment was in machinery and equipment, both from the public (-5.8 percent) and private (-5.3 percent) sectors. Exports edged up 0.2 percent (2.4 percent in Q1) and imports rose at a faster 7.7 percent (7.3 percent in Q1). 

On the production side, both services (3.6 percent compared to 5 percent in Q) and industry (3.9 percent compared to 5.7 percent in Q1) slowed while agricultural output shrank 1 percent (+2.4 percent in Q1).

On a quarterly basis, the economy advanced 0.3 percent, following a downwardly revised 0.7 percent rise in Q1.

Turkey Annual GDP Growth Slows to 3.1% in Q2

Turkstat | Joana Taborda | joana.taborda@tradingeconomics.com
9/9/2016 8:52:20 AM