Turkish economy grew 7.6 percent in second quarter

ANKARA

The GDP growth accelerated from 7.3 percent in the first quarter of 2022 to 7.6 percent in the April-June period, data from the Turkish Statistical Institute (TÜİK) have showed.

On a seasonally and calendar adjusted basis, the economy grew 2.1 percent in the second quarter from January-March, up from the quarterly growth of 0.7 percent recorded in the previous quarter.

“We did not only achieve a robust growth performance in the second quarter growth but also the balanced growth continued for the fifth quarter in a row,” said Treasury and Finance Minister Nureddin Nebati, hailing the latest GDP data.

He noted that the 7.6 percent is the second highest among all OECD and G-20 economies which released their second quarter data.

“The gains made based on the Türkiye Economic Model, which prioritizes growth and employment and supports production and exports will continue for the remainder of the year. The trademark of our economy is now sustainable and employment-focused growth,” Nebati wrote on Twitter.

The strong annual growth in machinery and equipment investments over the past two and a half years continued in the second quarter, rising 17.8 percent, the minister stressed. “We welcome this as it means the expansion of our production capacity,” he said.

According to data from TÜİK, the industry sector grew by 7.8 percent year-on-year, easing from the 8.2 percent growth in the first quarter with manufacturing output growing 9.1 percent, up from 8 percent.

The services sector, which grew 15.4 percent in the first quarter, expanded 18.1 percent in April-June, while real estate activities rose 4.1 percent in the second quarter, accelerating from the 3.8 percent expansion in January-March.

The contraction in agriculture deepened in the second quarter with the decline in the sector’s output quickening from 1.5 percent in the first quarter to 2.9 percent in the second quarter. The construction sector also contracted by 10.9 percent year-on-year, which came on top of the 7.7 percent drop in the industry’s output in the first quarter.

The financial and insurance sector grew by 26.6 percent after expanding 25.7 percent.

Households’ final consumption increased by 22.5 percent in the second quarter, gathering pace from the 21.5 percent rise in the first quarter. The share of household consumption in the GDP, however, declined from 58.5 percent in the first quarter to 57.4 percent.

Government final expenditures, which rose by 3.1 percent year-on-year in the January-March period, grew by 2.3 percent in the second quarter.

The growth in gross fixed capital formation accelerated from 4.2 percent to 4.7 percent.

The country’s export of goods and services increased by 16.4 percent, up from 14.8 percent in the first quarter, while imports, which were up 2.2 percent, rose by 5.8 percent, TÜİK said.

At current prices, The GDP reached 3.4 trillion Turkish Liras or $219 billion in the second quarter of 2022.

The share of compensation of employees in gross value added fell from 31.2 percent in the second quarter to 25.4 percent, while the share of net operating surplus/mixed income increased from 47.6 percent to 54 percent.