Turkish economy grew 3.9 percent in third quarter

ANKARA

The Turkish economy expanded 3.9 percent in the third quarter of 2022 from the July-September period last year, according to data from the Turkish Statistical Institute (TÜİK) released on Nov. 30

“Our policies continue to yield positive results,” Treasury and Finance Minister Nurettin Nebati, hailing the latest growth data.

On the back of the 3.9 percent growth in the third quarter, the Turkish economy expanded 6.2 percent in the first nine months of the year, Nebati wrote on Twitter.

“We will end this year with around 5 percent growth as predicted in the Medium-Term Program and be one of the countries recording highest growth rate,” the minister added.

With the policies it implements, despite all the global challenges Türkiye is decoupling from other economies in investments, employment, production and exports, he said.

“We are determined to continue to implement policies, which focus on job creation, support growth and investors.”

The government targets 5 and 5.5 percent of growth rates for 2023 and 2024.

The third quarter growth was in line with market expectations.

The pace of annual growth slowed from 7.7 percent in the second quarter of this year. The economy grew by 7.5 percent in January-March.

On a seasonally and calendar-adjusted basis, the economy contracted 0.1 percent in July-September from the previous quarter after expanding 1.9 percent quarter-on-quarter in April-June, TÜİK data showed.

Final consumption of households increased by 19.9 percent from a year ago, easing from 22.5 percent annual increase recorded in the second quarter of 2022. Government final consumption, which grew 2 percent year-on-year in April-June, rose by 8.5 percent in the third quarter.

Gross fixed capital formation contracted 1.3 percent on an annual basis after rising 5 percent in the second quarter.

The pace of annual growth in industry slowed from 7.9 percent in the second quarter to 0.3 percent, while the manufacturing sector expanded 1.7 percent, down from 9.2 percent in the previous quarter.

The contraction in the construction sector accelerated from 9.9 percent the April-June period to 14.1 percent in July-September.

The services sector, financial and insurance activities grew 6.9 percent and 13.9 percent year-on-year, respectively.

The country’s GDP measured in current prices was $2,421.5 billion in the third quarter, TÜİK said.

“The share of compensation of employees in the Gross Value Added at current prices was 26.3 percent in the third quarter of 2022, declining from 29.5 percent in the previous year. The share of net operating surplus/mixed income inched up to 54.8 percent from 54.1 percent from a year ago.