Türkiye grew by 3.8 percent in the second quarter

The Turkish Statistical Institute (TÜİK) has released the quarterly gross domestic product (GDP) results for the second quarter. The data showed that internal consumption supported growth in the second quarter as well. While imports experienced the highest increase in three years, exports continued to decline. As a result, the export decline extended to the third quarter, marking the longest consecutive decrease since the pandemic began. Notably, there was significant growth in the services sector on a sectoral basis. In contrast, just like in exports, the industrial sector also experienced contraction for the third consecutive quarter.

The Turkish economy recorded a growth of 3.8 percent in the second quarter of the year compared to the same period of the previous year.

According to the data from TÜİK, the domestic gross product increased by 3.5 percent in the second quarter of the year compared to the previous quarter.

Just like in the first quarter, the data indicated that in the second quarter as well, domestic consumption was the driving force behind the growth in the Turkish economy.

The final consumption expenditures of resident households increased by 15.6 percent as a chained volume index compared to the same quarter of the previous year in the second quarter of 2023. Government final consumption expenditures grew by 5.3 percent, while gross fixed capital formation increased by 5.1 percent. Imports of goods and services rose by 20.3 percent, whereas exports decreased by 9 percent.

The increase in imports seen in the second quarter marked the highest growth in three years, while on the export side, along with the consecutive decline observed in three quarters, the longest contraction series since the pandemic began was recorded.

In the second quarter, the contribution of domestic consumption to growth was 10.7 points, while government expenditures contributed 0.7 points, and investments contributed 1.3 points.

Net exports, however, subtracted 6.3 points from the growth. Inventory changes also deducted 2.6 points from the growth.

According to a Bloomberg HT survey conducted among economists, the expectation for the second quarter was a year-on-year growth of 4 percent.

Among the surveyed institutions, the lowest estimate for the second quarter was 2.5 percent annual growth, while the highest estimate was 4.7 percent.

The quarterly growth expectation was set at 3.3 percent.

The growth figure for the first quarter, initially announced as 4 percent, was revised down to 3.9 percent.

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