Turkish economy expands by 2.1 percent in third quarter

ANKARA

Türkiye’s economy grew by 2.1 percent in the third quarter of 2024, according to data released by the Turkish Statistical Institute (TÜİK) on Nov. 29.

While the growth reflects moderate progress, it aligns with projections made during the country’s ongoing disinflation policies.

Treasury and Finance Minister Mehmet Şimşek commented on the results, emphasizing the balanced nature of growth during this period.

“Growth during the disinflation process is moderate and balanced in line with our projections. We expect economic activity to gain momentum starting from the second half of next year, thanks to increased predictability with the decline in inflation, the recovery in our trading partners, the improvement in global trade and supportive global financial conditions," he said.

"We will continue to work for sustainable, high and inclusive growth, taking into account the welfare of all segments of society,” Şimşek added.

The construction sector stood out as a major contributor, growing by 9.2 percent. Positive growth was also seen in financial and insurance activities (6.2 percent), agriculture, forestry, fishing (4.6 percent) and real estate activities (2.5 percent). However, some sectors faced contractions, including other service activities (-2.4 percent), the industry sector (-2.2 percent), and professional, administrative and support services (-0.3 percent).

On a quarterly basis, GDP declined slightly by 0.2 percent, whereas year-on-year growth stood at 1.9 percent. Household consumption saw an increase of 3.1 percent, while government expenditure contracted by 0.9 percent. Gross fixed capital formation also dipped by 0.8 percent.

Exports of goods and services rose modestly by 0.8 percent, while imports fell sharply by 9.6 percent, indicating a positive contribution from net exports. Compensation of employees as a share of Gross Value Added increased to 36.4 percent, compared to 31.9 percent in the same period last year, while the share of net operating surplus/mixed income dropped to 45.1 percent from 47.8 percent.

Trade Minister Ömer Bolat also addressed the latest growth data, highlighting Türkiye’s consistent trajectory of economic expansion.

He noted that the economy has grown for 17 consecutive quarters over the past four years.

“While the economy grew by 2.1 percent in the third quarter of this year, the contribution of net exports of goods and services to growth was 2.2 points,” Bolat stated.

He added that foreign trade remains the primary driver of growth, with net exports contributing positively to Türkiye’s economy for three consecutive quarters.

The data shows Türkiye’s continued efforts to balance economic stability and growth amid global uncertainties. With expectations of increased momentum in the upcoming year, policymakers are positioning the economy for long-term success.