In the second quarter, GDP rose 2.9% over the same period last year. The reading represents a deceleration compared to the revised 3.3% expansion recorded in the first quarter (previously reported: +3.2% year-on-year) and marked, in fact, the lowest growth rate recorded since the third quarter of 2009. In addition, the figure undershot market expectations, which had anticipated a 3.3% rise. The slowdown in the second quarter was entirely caused by a moderation in the domestic sector. Private consumption contracted 0.5% over the same period last year (Q1: +0.2% yoy), the first decline seen in almost three years. In addition, gross fixed investment plunged 7.4%, a sharp deterioration over the 1.5% increase recorded in the first quarter. Meanwhile, the net contribution from the external side of the economy improved. Exports of goods and services surged 19.8% (Q1: +11.9% yoy) in spite of the recession currently affecting most of the European Union, Turkey's main trading partner. The figure represents, in fact, the fastest pace seen in over a decade. Meanwhile, imports contracted 3.6%, an improvement over the 6.0% decline recorded in the first quarter. As a result, the external sector's net contribution to overall growth improved from 4.6 percentage points in the first quarter to 5.7 percentage points in the second. A quarter-on-quarter analysis, however, does not corroborate the slowdown suggested by annual figures, as GDP grew a strong 1.8% over the previous quarter in seasonally and calendar-day adjusted terms, contrasting the 0.1% contraction recorded in Q1. The government anticipates economic growth to reach 4.0% this year.
Economic growth continues to ease in Q2 despite strong exports
September 10, 2012
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Turkey Economic News
October 13, 2016
The current account balance recorded a USD 1.8 billion deficit in August (July: USD 2.7 billion deficit).
October 10, 2016
In August, industrial production expanded a calendar-adjusted 2.2% compared to the same month last year.
October 3, 2016
The Manufacturing Purchasing Managers’ Index (PMI), produced by the Istanbul Chamber of Industry (ICI) and IHS Markit, increased slightly to 48.3 in September from August’s 47.0, which had marked a multi-year low.
October 3, 2016
In September, consumer prices increased 0.18% over the previous month.
September 26, 2016
The Real Sector Confidence Index published by the Central Bank increased from August’s 103.6 to 106.5 in September.