Turkey’s GDP grows in Q2 ’24

Turkey’s Gross Domestic Product (GDP) increased by 2.5 per cent in the second quarter of 2024, compared to the same period in the previous year, according to data released on Monday.

The growth was driven by a 7.4 per cent increase in other service activities and a 6.5 per cent rise in construction. Real estate, agriculture, forestry, and fishing sectors each saw 3.7 per cent growth. However, the industry sector contracted by 1.8 per cent.

Quarter-on-quarter, seasonally and calendar-adjusted GDP saw a modest increase of 0.1 per cent.

Economists surveyed by Bloomberg had projected an annual growth rate of 3.2 per cent. The quarterly data reflects “visible weakening,” with a noticeable slowdown in domestic consumption, the primary driver of economic growth, according to Istanbul-based economist Haluk Burumcekci. He has revised his year-end growth forecast down to 3 per cent from 3.5 per cent.

Final consumption expenditure of resident households grew by 1.6 per cent in the second quarter of 2024 compared with the same quarter of the previous year, while government expenditure rose by 0.7 per cent.

Gross fixed capital formation increased by 0.5 per cent. Exports of goods and services saw a minor increase of 0.04 per cent, whereas imports decreased by 5.7 per cent.

Compensation of employees surged by 112.4 per cent, raising its share of gross value added to 40.8 per cent, up from 33.8  per cent in the previous year. Net operating surplus/mixed income rose by 47.7 per cent, but its share dropped to 37.4 per cent from 44.6 per cent a year ago.