Strong Growth in Turkey’s Economy
The Turkish economy has shown impressive resilience, growing by 5.9% in the third quarter of the year. The Turkish economy growth exceeds the expectations of many economists and highlights the dynamic nature of the economy.
Statistics from the Turkish Statistical Institute
The Turkish Statistical Institute (TÜİK) released the Gross Domestic Product (GDP) figures for the third quarter (July-September). According to their first estimate, the GDP increased by 5.9% compared to the same quarter last year.
Detailed Analysis of Economic Sectors
Examining the components of GDP, the construction sector saw an impressive 8.1% increase. Industry grew by 5.7%, finance and insurance activities by 5.1%, services by 4.3%, and public administration, education, human health, and social service activities by 3.6%. Real estate activities rose by 2.7%, other service activities by 2.2%, information and communication activities by 1.7%, and the agricultural sector by 0.3%. Taxes on products minus subsidies also increased by 16.5%. Professional, administrative, and support service activities, however, decreased by 2.5%.
Consistent Growth Since COVID-19 Pandemic
The Turkish economy growth marks the consistent expansion for 13 consecutive quarters since the second quarter of 2020, which was heavily impacted by COVID-19 pandemic measures.
Revisions in Previous Quarters’ Growth Figures
There have been revisions in the growth figures for previous quarters. Economists participating in the AA Finance Growth Expectation Survey had predicted a 5.19% growth for this quarter, which the actual figures have surpassed.
Breakdown of Growth Components
Household consumption expenditures increased by 11.2%, while government final consumption expenditures rose by 5.3%, and gross fixed capital formation by 14.7%. Exports of goods and services increased by 1.1%, and imports by 14.5%.
Increases in Labor Payments and Mixed Income
Labor payments surged by 117.2%, and net operating surplus/mixed income increased by 50.7%. The share of labor payments in gross value added at current prices was 32.2%, up from 26.1% in the same quarter last year. Net operating surplus/mixed income share decreased from 55% to 47%.
For an in-depth understanding of the Turkish economy’s growth in the third quarter and its implications for the global market, visit Prestij Consulting’s blog. For personalized advice and economic insights, reach out via our contact page.
