Growth data for first quarter out this week

ISTANBUL

The Turkish Statistical Institute (TÜİK) will release the economic growth data for the first quarter on May 31.

The Turkish economy grew 5.6 percent last year with its GDP expanding 3.5 percent in the final quarter of 2022 from a year earlier.

Before the earthquakes hit Türkiye in early February, leading indicators were pointing to a stronger domestic demand compared to foreign demand as well as an increase in the growth trend in the first quarter, the Central Bank said last week in a statement released after the Monetary Policy Committee (MPC) meeting.

“Recent data show that economic activity in the earthquake zone has been recovering faster than expected, and it is becoming evident that the earthquake will not have a permanent impact on performance of the Turkish economy in the medium term,” the bank said.

Earlier this month, the European Bank for Reconstruction and Development (EBRD) predicted Türkiye’s economy will grow 2.5 percent in 2023.

The Turkish growth is expected to bounce to 3 percent in 2024, according to the development bank.

Also, this month, the European Commission forecast that the Turkish economy will grow 3.5 percent in 2023.

Turkish authorities will also release some other key macroeconomic data this week, including the foreign trade figures for April, the economic confidence index and combined profits of the local banks generated in the first four months of 2023.