Türkiye’s economy grows 4 percent in first quarter

Türkiye’s economy grows 4 percent in first quarter

Türkiye’s economy grows 4 percent in first quarter

Turkey’s economy expanded more than expected at the start of the year, bolstered by pre-election spending and strong household consumption.

Türkiye’s gross domestic product (GDP) grew 4 percent year-on-year in the first quarter, data from the Turkish Statistical Institute (TÜİK) released on May 31 showed.

The economy expanded 0.3 percent in January to March compared with the previous three-month period, on seasonal- and calendar-adjusted terms, slowing from a 0.9 percent expansion in the fourth quarter of 2022.

Growth in the quarter was driven by household consumption, which expanded 16.2 percent on year, while government consumption increased by 4.9 percent, the data showed.

Economic activity increased in services, construction and public administration, but declined in the industrial sector and for agriculture, TÜİK added.

“When the activities which constitute gross domestic product were analyzed; the value added increased by 12.4 percent in services, 12.0 percent in professional, administrative and support service activities, 11.2 percent in financial and insurance, 8.1 percent in information and communication, 7.8 percent in other service activities, 5.1 percent in construction, 3.6 percent in public administration, education, human health and social work activities and 1.4 percent in real estate activities. Industry sector and agriculture, forestry and fishing decreased by 0.7 percent and 3.8 percent, respectively,” said TÜİK.

Türkiye’s GDP increased by 84.4 percent and reached 4.63 trillion Turkish Liras at current prices, equaling $245.5 billion, in the first quarter of the year.

Imports of goods and services increased by 14.4 percent in the first quarter compared with the same quarter of the previous year in the chained linked volume index, and exports of goods and services decreased by 0.3 percent, according to TÜİK.