Turkish economy expands by 5.7% in Q1

ISTANBUL

Türkiye’s economy has grown 5.7% in the first quarter of 2024, on a yearly basis, the country's statistical office TurkStat revealed on Friday.

The country's gross domestic product (GDP) reached 8.8 trillion Turkish liras ($285.57 billion) in the January-March period, the statistical institute said.

"When the activities which constitute gross domestic product were analyzed; the value added increased by 11.1% in construction, 5.5% in information and communication," it said.

In the last quarter of 2023, the country's GPD increased by 4%.

An Anadolu survey this week predicted that Türkiye's GDP would increase by 5.9%.

Mehmet Simsek, the treasury and finance minister, said Türkiye is taking decisive steps toward its goals.

"With our rational, predictable and rule-based policies, our economy is moving toward more balanced and sustainable growth," he stressed.

The contribution of net external demand to growth was positive by 1.6 points after five quarters, he said.

He highlighted that the seasonally adjusted unemployment rate fell to 8.7%, the lowest level in 44 quarters.

"With more supportive external conditions and moderate domestic demand in the second half, we envisage a positive contribution from net external demand to growth this year," he said.

He added: "Thanks to our program, the rebalanced growth composition, declining current account deficit, rising confidence, improving expectations and accelerating foreign resource inflows will contribute significantly to disinflation."

The Turkish Trade Ministry recalled that the country's economy has been increasing for the last 15 quarters.

With the last figure, 5.7%, Türkiye posted the highest growth figure among the EU and G20 economies, of which GDP figures revealed so far, the ministry stated.

Cevdet Yilmaz, the vice president of the country, also said on X platform that Türkiye's annualized GDP reached a historical high level of $1.16 trillion in the first quarter of 2024.

"We are in a period of declining current account deficit, increasing reserves and improving risk indicators," he said, adding that the results the country has achieved on a monthly basis in the fight against inflation, which is the main priority, will bring significant declines on an annual basis in the second half of the year.

"We will continue to implement our medium term program with determination to achieve stable, balanced and inclusive growth and a permanent increase in welfare," he added.