Turkey Q3 GDP Growth Strongest in 6 Years
The Turkish economy grew 11.1 percent year-on-year in the third quarter of 2017, accelerating sharply from an upwardly revised 5.4 percent expansion in the previous three-month period and beating market expectations of 10 percent. It was the strongest pace of expansion since the third quarter of 2011, boosted by household consumption, fixed investment, exports and government spending.
On the expenditure side, household consumption jumped 11.7 percent after a 3.1 percent gain in Q2, and fixed investment rose sharply by 12.4 percent following an 8 percent advance in the previous period. Also, government spending went up 2.8 percent in the third quarter, recovering from a 2.1 percent contraction in the previous three-month period, and net external demand contributed positively as exports surged 17.2 percent (10.7 percent in Q2) and imports increased at a softer 14.5 percent (1.8 percent in Q2).
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On the production side, output growth was supported by: services (20.7 percent from 5.9 percent in Q2); industrial production (14.8 percent from 7.2 percent), of which manufacturing (15.2 percent from 7 percent); construction (18.7 percent from 5.5 percent); public administration, education, human health and social work activities (5.1 percent from 3.2 percent); information and communication (15.5 percent from 10.1 percent); professional, administrative and support service activities (15.4 percent from 6.2 percent); and real estate activities (1.5 percent from 1.4 percent). Meanwhile, agriculture, forestry and fishing expanded at a slower rate (2.8 percent from 4.8 percent in Q2), while financial and insurance activities contracted (-5.8 percent from 9.4 percent).
On a seasonally adjusted quarterly basis, the economy expanded 1.2 percent in the three months to September, following an upwardly revised 2.2 percent growth in the previous period.