News

Turkey GDP Growth Slows in Q4
The economy of Turkey grew 3.4% year-on-year in the fourth quarter 2025, easing from a revised 3.8% expansion in the third quarter and coming in slightly below market expectations of a 3.5% rise. Fixed investment growth slowed sharply (5.4% vs 11.5% in Q3), while government expenditure dropped (-0.9% vs 2.5%). Net trade also weighed on GDP, as exports declined (-2.3% vs -0.8%) while imports rose (3.8% vs 4.4%). However, these were partly offset by a sustained increase in household consumption (5.2% vs 4.3%). On the production side, activity moderated across most sectors, particularly in manufacturing (0.9% vs 7.6%), construction (8.6% vs 14.1%), trade, transportation, accommodation, and food services (4.2% vs 6.5%), and financial and insurance activities (4.1% vs 11.1%). On a quarterly basis, GDP rose 0.4%, slowing from a revised 1.0% increase in the previous quarter. For the full year 2025, the economy expanded 3.6%.
Published on 2026-03-02

Turkey GDP Growth Slows in Q4
The economy of Turkey grew 3.4% year-on-year in the fourth quarter 2025, easing from a revised 3.8% expansion in the third quarter and coming in slightly below market expectations of 3.5%. Fixed investment growth slowed sharply (5.4% vs 11.5% in Q3), while government expenditure dropped (-0.9% vs 2.5%). Net trade also weighed on GDP, as exports declined (-2.3% vs -0.8%) while imports rose (3.8% vs 4.4%). However, these were partly offset by a sustained increase in household consumption (5.2% vs 4.3%). On the production side, activity moderated across most sectors, particularly in manufacturing (0.9% vs 7.6%), construction (8.6% vs 14.1%), trade, transportation, accommodation, and food services (4.2% vs 6.5%), and financial and insurance activities (4.1% vs 11.1%). On a quarterly basis, GDP rose 0.4%, slowing from a revised 1.0% increase in the previous quarter. For the full year 2025, the economy expanded 3.6%, just below market forecasts of 3.7%.
Published on 2026-03-02

Turkey GDP Growth Slows More Than Expected
The Turkish economy expanded 3.7% year-on-year in Q3 2025, easing from an upwardly revised 4.9% growth in the previous quarter, and more than the expected slowdown to 4.2%. The main drag came from net trade, as exports fell 0.7% (vs. 2% in Q2) while imports rose 4.3% (vs. 8.9%). Meanwhile, household consumption growth accelerated (4.8% vs. 4.4%), fixed investments surged to their highest in two years (11.7% vs. 9.1%), and government spending rebounded (0.8% vs. -0.6%). On the production side, activity growth picked up in construction (13.9% vs. 11.1%), financial and insurance activities (10.8% vs. 4%), information and communication (10.1% vs. 7.1%), other services (7.1% vs. 2.5%), industry (6.5% vs. 6%), and trade, transport, accommodation, and food services (6.3% vs. 5.8%). Conversely, agriculture, forestry, and fishing fell 12.7% after a 5.5% decline previously. On a quarterly basis, GDP grew 1.1%, down from 1.6% in the previous period.
Published on 2025-12-01

Turkish GDP Expands at Fastest Pace in Over a Year
The Turkish economy grew 4.8% year-on-year in Q2 2025, the fastest pace since Q1 2024, outpacing market expectations of 4.1% and accelerating from a revised 2.3% in the previous quarter. The expansion reflected stronger household consumption (5.1% vs 1.6%), a surge in investment (8.8% vs 1.8%), and rising exports (1.7% vs 0.1%) and imports (8.8% vs 2.7%). In contrast, government spending contracted sharply (-5.2% vs 1.9%), dragging on overall growth. On the production side, growth was broad-based, led by construction (10.9% vs 8.6%), information and communication (7.1% vs 5.7%), real estate (2.6% vs 2.0%), and industry (6.1% vs -1.7%). However, agriculture (-3.5% vs -2.1%) and public services (-1.2% vs -0.1%) recorded deeper contractions. On a quarterly basis, GDP rose 1.6%, up from a revised 0.7% in the previous quarter.
Published on 2025-09-01

Turkish GDP Expands at Fastest Pace in Over a Year
The Turkish economy grew 4.8% year-on-year in Q2 2025, the fastest pace since Q1 2024, outpacing market expectations of 4.1% and accelerating from a revised 2.3% in the previous quarter. The acceleration was largely driven by the central bank’s rate cuts from a peak of 50% in late 2024, following earlier hikes to rein in soaring inflation. The expansion reflected stronger household consumption (5.1% vs 1.6%), a surge in investment (8.8% vs 1.8%), and rising exports (1.7% vs 0.1%) and imports (8.8% vs 2.7%). In contrast, government spending contracted sharply (-5.2% vs 1.9%), dragging on overall growth. On the production side, growth was broad-based, led by construction (10.9% vs 8.6%), information and communication (7.1% vs 5.7%), real estate (2.6% vs 2.0%), and industry (6.1% vs -1.7%). However, agriculture (-3.5% vs -2.1%) and public services (-1.2% vs -0.1%) recorded deeper contractions. On a quarterly basis, GDP rose 1.6%, up from a revised 0.7% in the previous quarter.
Published on 2025-09-01

Turkish GDP Expands at Fastest Pace in Over a Year
The Turkish economy grew 4.8% year-on-year in Q2 2025, the fastest pace since the first quarter of 2024, outpacing market expectations of 4.1% and accelerating from a revised 2.3% in the previous quarter. The Growth was driven by stronger household consumption (5.1% vs 1.6%), a surge in investment (8.8% vs 1.8%), and gains in both exports (1.7% vs 0.1%) and imports (8.8% vs 2.7%). In contrast, government spending contracted sharply (-5.2% vs 1.9%). On the production side, growth was broad-based. Construction expanded at a double-digit pace (10.9% vs 8.6%), alongside solid gains in information and communication activities (7.1% vs 5.7%), real estate (2.6% vs 2.0%), and the industrial sector (6.1% vs -1.7%). However, agriculture (-3.5% vs -2.1%) and public administration, education, health and social work (-1.2% vs -0.1%) recorded deeper contractions. On a quarterly basis, GDP rose 1.6%, picking up from a revised 0.7% increase in the previous quarter.
Published on 2025-09-01

Turkish GDP Growth Weakest in 5 Years
The Turkish economy expanded 2% year-on-year in Q1 2025, the smallest growth rate since a contraction in Q2 of 2020, below a 3% rise in Q4 2024 and forecasts of a 2.3% increase. Household spending (2% vs 3.9%), government expenditure (1.2% vs 1.6%) and investment (2.1% vs 6.1%) slowed significantly. Also, exports stalled (vs -2%) and imports rose at a faster 3% (vs 1.6%). On the production side, real estate activities accelerated (up 2.4% vs 1.3% previously), while growth in the services sector slowed (1.3% vs 3.2%), and the industrial sector contracted (-1.8% vs +1.4%). Compared to the previous period, the GDP in Turkey rose 1%, following a 1.7% rise in the previous period. The Turkish economy has been grappling with nearly two years of monetary tightening, which pushed borrowing costs as high as 50%. Although the central bank began cutting interest rates in December, it reversed course and raised them again amid market turmoil following the arrest of Istanbul Mayor Ekrem Imamoglu.
Published on 2025-05-30

Turkey Q4 GDP Growth Exceeds Forecasts
Turkey’s GDP expanded 3% year-on-year in Q4 2024, up from a revised 2.2% in Q3, beating forecasts of 2.6%. This marks the strongest expansion since Q1, driven by stronger household consumption (3.9% vs. 2.6% in Q3), higher government spending (1.6% vs. 0.1%), and a sharp rebound in fixed investments (6.1% vs. -0.1%). Meanwhile, net trade dragged on GDP, as exports fell 2% (vs. +0.7%), while imports rose 1.6% (vs. -9.6%). On a quarterly basis, GDP expanded 1.7%, rebounding from a 0.1% decline in Q3 and marking the steepest growth since Q2 2023. For the full year, the Turkish economy grew 3.2%.
Published on 2025-02-28

Turkish Economy Slows in Q3
Turkey's GDP grew by 2.1% year-on-year in Q3 2024, marking the slowest expansion since the contraction in Q2 2020, as high interest rates continue to weigh on the economy. It follows a downwardly revised 2.4% growth in Q2 and compares with forecasts of 2.6%. Gross capital formation shrank 0.8%, the first decline in two years (vs 0.8% in Q2) and government expenditure contracted the most since Q1 2021 (-0.9% vs -0.4%). Also, exports growth slowed and imports shrank much more (-9.6% vs -5.8%). On the other hand, household spending increased at a faster pace (3.1% vs 1.5%). Compared to the previous quarter, GDP contracted by 0.2%, matching the revised 0.2% decline recorded in Q2. This marks the first time since 2018 that the economy has shrunk for two consecutive quarters.
Published on 2024-11-29

Turkey GDP Growth Slows Sharply in Q2
The Turkish economy expanded 2.5% year-on-year in the second quarter of 2024, the smallest growth since a contraction four years ago, following a downwardly revised 5.3% rise in the previous quarter and below forecasts of 3.2%. Household spending slowed sharply (1.6% vs 6.8%) as a big surge in borrowing costs weighed on consumers' purchasing power. Also, government spending grew a meager 0.7% (vs 5.4% in Q1) amid efforts to cut public expenditure and control public finances. In addition, gross capital formation (0.5% vs 9.3%) grew at a much softer pace, while exports stalled (vs 4.3%) and imports wee down 5.7% (vs -3%). Compared to the previous quarter, the Turkish economy grew a meager 0.1%, down from an expansion of 1.4% in the previous period. The IMF expects the Turkish economy to grow 3.2% this year and 3.3% in 2025.
Published on 2024-09-02

Turkey GDP Growth Accelerates in Q1
The Turkish economy advanced by 5.7% year-on-year in Q1 2024, quickening from a 4% rise in Q4 and matching market forecasts. The industrial sector saw notable growth, surging by 4.9%, compared to 1.9% in Q4, driven by strong performance in construction (11.1% vs 10.8%) and manufacturing (4.7% vs 1.8%). The services sector grew by 4.3%, up from 3% in Q4, with significant contributions from information & communication (5.5% vs -3%); professional, administrative & support services (5% vs -1.5%), public administration (3.3% vs 1.9%) and real estate (2.5% vs 2.8%). Also, agricultural activity gained momentum, increasing by 4.6% after a modest 0.5% growth in Q4. On the expenditure side, household consumption rose by 7.3%, government spending increased by 3.9% and gross fixed capital formation surged by 10.3%. Meanwhile, exports increased by 4% while imports declined by 3.1%. On a seasonally adjusted quarterly basis, the GDP rose by 2.4% in Q1, following a 1% increase in the prior period.
Published on 2024-05-31

Turkish GDP Expands More Than Expected
The Turkish economy grew 4% year-on-year in Q4 2023, following an upwardly revised 6.1% rise in Q4 and beating forecasts of 3.5%. On the production side, a slowdown was seen in the industrial sector (1.9% vs 5.5%), namely manufacturing (1.8% vs 5.9%), public administration (1.9% vs 4.8%) and services (3% vs 4.6%) while a contraction was recorded for information and communication (-3% vs 1.1%) and professional and administrative activities (-1.5% vs -2.1%). On the other hand, agriculture (0.5% vs 0.3%), real estate (2.8% vs 2.7%) and construction (10.8% vs 7.8%) rose at a faster pace. On the expenditure side, both household consumption (9.3% vs 11.1%) and gross fixed capital formation (10.7% vs 14.8%) rose at a robust pace while government spending (1.7% vs 7.6%) slowed sharply. Exports (0.2% vs 1.2%) and imports (2.7% vs 14.5%) also rose less. Compared to the previous quarter, the GDP grew 1%. Considering the full 2023, the Turkish economy expanded 4.5%, compared to 5.5% in 2022.
Published on 2024-02-29

Turkey GDP Grows More Than Expected in Q3
The Turkish economy expanded 5.9% year-on-year in the third quarter of 2023, after an upwardly revised 3.9% gain in Q2 and compared to market forecasts of 5.6%. The growth was mainly driven by gross fixed capital formation, which soared 14.7%. Meanwhile, household spending surged 11.2% and government expenditure increased 5.3%. As for the sectors, the largest gains were seen for construction (8.1%), industry (5.7%), financial & insurance (5.1%) and services (4.3%). Also, there was a modest 1.1% increase in exports, impacted by weakened demand in Europe for Turkish exports, serving as a significant factor in restraining the overall growth rate in Q3, while imports soared by 14.5%. Compared to the previous quarter, the economy expanded by 0.3%, a slowdown from the revised 3.3% in the preceding three months, reflecting a cooling trend as the central bank tightened monetary policy following the May elections to address high inflation.
Published on 2023-11-30

Turkey GDP Grows More Than Expected in Q2
The Turkish economy expanded 3.8% year-on-year in the second quarter of 2023, slightly lower than 3.9% in the previous period and compared to forecasts of 3.5%. The growth was mainly driven by driven by household spending, which surged by 15.6%, marking a seventh consecutive quarter of double-digit rise. Meanwhile, government final expenditure increased by 5.3% and gross fixed capital formation grew by 5.1%. As for the sectors, the largest gains were seen for other service activities (6.6%), services (6.4%), construction (6.2%), and public administration, education, human health and social work activities (5.1%). On the other hand, the industry shrank by 2.6% and professional, administrative and support service activities contracted by 0.7%. Also, exports declined 9% while imports soared by 20.3% Compared to the previous quarter, the economy expanded 3.5%.
Published on 2023-08-31

Turkey GDP Growth Slightly Higher than Expected
The Turkish economy expanded 4% year-on-year in the first quarter of 2023, slightly higher than 3.5% in the previous period and compared to forecasts of 3.9%. The growth was mainly driven by pre-election and earthquake-related spending, and a fast recovery in some areas hit by the disasters. Public spending increased 5.3%, gross fixed capital formation 4.9% and the construction sector 5.1%. At the same time, low interest rates, higher wages and subsidized utility bills helped to boost private consumption which surged 16.2%, a sixth consecutive quarter of double-digit growth. On the other hand, exports declined 0.3% while imports rose 14.4%. Also, the industrial sector shrank 0.7% and agriculture, forestry and fishing contracted 3.8%. Compared to the previous quarter, the economy expanded 0.3%. The central bank recently said the earthquakes will not have a lasting impact on the performance of Turkey's economy in the medium term.
Published on 2023-05-31

Turkish Economy Expands More than Expected
The Turkish economy advanced 3.5% year-on-year in the fourth quarter of 2022, following an upwardly revised 4% growth in the previous period and above market forecasts of a 3% rise. Household consumption slowed (16.1% vs 20.4% in Q3) while gross fixed capital formation rebounded (2.6% vs -0.8%). At the same time, exports fell by 3.3% (vs 12.4%) and imports eased to 10.2% (vs 11.9%). Also, government expenditure surged significantly (9%, the biggest increase since presidential elections in 2018, vs 4.7%). Compared to the previous quarter, the economy grew by 0.9%, rebounding from a 0.1% decline in the third quarter. Considering full 2022, the Turkish economy expanded 5.6%, after a record growth of 11.4% in 2021. For 2023, the World Bank recently said the two very large earthquakes of February 6 caused an estimated $34.2 billion in direct physical damages, the equivalent of 4% of the country’s 2021 GDP.
Published on 2023-02-28

Turkey GDP Growth Slows Sharply in Q3
The Turkish economy expanded 3.9% year-on-year in the third quarter of 2022, following an upwardly revised 7.7% rise in the previous period. Figures compare with market forecasts of 4%. It is the weakest growth rate since a contraction in the second quarter of 2020 at the height of the global pandemic, as surging inflation and plunging lira weigh on domestic demand and investment while a global slowdown in main trading partners weighed on foreign demand. Household spending increased at a slower 19.9% (vs 22.5% in Q2) and investment sank 1.3%, the first decline in a year (vs 5% in Q2). At the same time, exports rose at a softer 12.6% (vs 16.4%) while imports jumped 12.2% (vs 5.8%). Meanwhile, government consumption surged 8.5%, much higher than a 2% rise in Q2. Compared to the previous period, the economy contracted 0.1%.
Published on 2022-11-30

Turkish GDP Growth Surpasses Expectations
The Turkish economy expanded by 7.6 percent year-on-year in the second quarter of 2022, picking up from the 7.3 percent growth in the previous period and above market forecasts of a 7.5 percent increase. Household consumption expanded sharply (22.5 percent vs 21.5 percent in Q1), and gross fixed capital formation increased at a faster rate (4.7 percent vs 4.2 percent. Also, the change in net foreign demand contributed positively to growth as exports rose by 16.4 percent (from 14.8 percent) while imports increased 5.8 percent (from 2.2 percent). On the other hand, government expenditure slowed (2.3 percent vs 3.1 percent). On a seasonally and calendar adjusted basis, the economy grew by 2.1 percent from 1.2 percent in the first quarter.
Published on 2022-08-31

Turkey GDP Growth Beats Expectations in Q1
The Turkish economy expanded 7.3 percent year-on-year in the first quarter of 2022, easing from a 9.1 percent advance in the previous period and above market expectations of a 7.1 percent growth. Household consumption slowed (19.5 percent vs 21.4 percent in Q4) while both government spending (0.9 percent vs -1.9 percent) and gross fixed capital formation (1.1 percent vs -0.8 percent) rebounded. Also, net foreign demand contributed positively to GDP growth, as exports climbed 16.8 percent while imports went up at a slower 2.3 percent. On a seasonally and calendar-adjusted basis, the economy grew by 1.2 percent, after a 1.5 percent expansion in Q4.
Published on 2022-05-31

Turkey GDP Growth Stronger than Expected in Q4
The Turkish economy expanded 9.1 percent year-on-year in the fourth quarter of 2021, following an upwardly revised 7.5 percent growth in the previous period and above market expectations of 9 percent. Household consumption surged 21.4 percent from a year earlier (vs 10.1 percent in Q4); and net foreign demand contributed positively to GDP growth, as exports climbed 20.7 percent while imports went up at a slower 2.6%. Meanwhile, gross fixed capital formation declined at a softer pace (-0.8 percent vs -1.9 percent) and government spending fell (-1.7 percent vs 7.1 percent). Considering full 2021, the Turkish GDP advanced 11 percent. The Central Bank of Turkey has reduced borrowing costs by 500bps since September and inflation surged to near 50% while the lira stabilized around 14 per USD after reaching a record low of 18.4 per USD in December.
Published on 2022-02-28