Turkish economy grows 7.4 percent in first quarter of 2018, data shows

Turkish economy grows 7.4 percent in first quarter of 2018, data shows

ANKARA/ISTANBUL
Turkish economy grows 7.4 percent in first quarter of 2018, data shows

The Turkish economy expanded by 7.4 percent in the first quarter of this year compared with the same period last year, official data showed on June 11.

This was above estimates, which were at around 7 percent.

The three-month gross domestic product (GDP) at current prices climbed to around 792.7 billion Turkish Liras (nearly $207.5 billion), according to data from the Turkish Statistics Institute (TÜİK)

The total value-added services and industry rose by 10 percent and 8.8 percent, respectively, while the construction sector saw a 6.9 percent rise. The agricultural sector posted a 4.6 percent hike from January to March, compared to the same period in 2017.

According to calculations by economists, the largest contribution to first quarter GDP growth came from private consumption by 6.7 points, followed by total investments by 2.3 points and public consumption by 0.5 points.

Muammer Kömürcüoğlu, an economist at İş Investment, said in a client note the strong first quarter data was not surprising.

“The point will be what the second quarter data would be. Preliminary indicators have shown that the economy would slow down in the second quarter,” he said, adding that their 2018 growth forecast was recently decreased from 5.5 percent to 4 percent.

The government praised the first quarter GDP growth.

Turkey continues to be one of the fastest growing countries in the world, President Recep Tayyip Erdoğan said on June 11.

“Turkey’s economy grew 7.4 percent in the first quarter of 2018. We are the first among OECD [Organization for Economic Cooperation and Development] countries and second among G-20 countries,” he said on his official Twitter account.

“We continue to be one of the fastest growing countries in the world,” he added.

“Despite the attacks on the economy and the games being played, we continue to grow strongly with strong macroeconomic fundamentals,” Erdoğan also said.

According to the TÜİK’s revised data, the country’s economy grew by 7.4 percent year-on-year last year, which was the highest annual growth rate since 2013. The growth was 3.2 percent in 2016.

The government is aiming for 5.5 percent annual economic growth through 2020 under its medium-term program.

A series of international organizations and rating agencies have recently warned Turkey of an overheating economy, citing risks, including an output gap, inflation well above target, and a wider current account deficit.

Growth, Turkish economy, economic growth