Turkish economic growth surges to 11 pct in 2021
The Turkish economy expanded 11 percent year on year in 2021 in line with market expectations, according to official data revealed on Feb. 28.
“Gross domestic product at current prices increased by 42.8 percent and reached 7.2 trillion Turkish Liras [nearly $518 billion] in 2021 compared with the previous year,” the Turkish Statistical Institute (TÜİK) said in a statement.
The gross domestic product per capita was 85,672 liras ($9,539) at current prices last year.
“When the activities which constitute gross domestic product were analyzed; the value added increased by 21.1 percent in service activities, 20.3 percent in other service activities, 20.2 percent in the information and communication activities, 17.3 percent in professional, administrative and support, 16.6 percent in industry, 7 percent in public administration, education, human health and social work activities and 3.5 percent in real estate activities,” TÜİK said.
Financial and insurance activities, agriculture sector and construction sector decreased 9 percent, 2.2 percent and 0.9 percent, respectively, it added.
In the fourth quarter of 2021, the Turkish economy grew 9.1 percent from the same period of the previous year, TÜİK said.
Gross domestic product at current prices increased 51.8 percent to reach 2.3 trillion liras ($198 billion) in the last quarter of the year. On a quarterly basis, the economy expanded 1.5 percent in October-December 2021.
Treasury and Finance Minister Nureddin Nebati said Turkey has become the fastest growing economy among the countries of G20, Organization for Economic Co-operation and Development, and EU for which data is available.
“Domestic and foreign demand’s contribution to growth showed a balanced outlook in 2021,” he said.
“Machinery and equipment investments maintained strong growth with an increase of 20.5 percent,” Nebati added.
“Through focusing on investment, production and exports, we will achieve our target of value-added growth that provides high employment,” said the minister.
On an annual basis, Turkey posted a 7.5 percent growth in the third quarter after expanding 21.9 percent in the second quarter and 7.3 percent in the first quarter of 2021.
All G20 countries, which data are available for, narrowed in 2020, while only China and Turkey recorded growth with 2.3 percent and 1.8 percent, respectively.
Rifat Hisarcıklıoğlu, the head of the Union of Chambers and Commodity Exchanges of Turkey (TOBB), said: “Supports provided to sectors facing hardships will make growth sustainable. Now, it’s time to focus on the fight against inflation and 2022.” The headline inflation in Turkey hit 48 percent in January, according to official data.
The share of exports in the Turkish economy’s growth last year was 44.2 percent, said İsmail Gülle, the head of the Turkish Exporters’ Assembly (TİM).