TÜİK data released: Turkish economy grew below expectations

The Turkish Statistical Institute (TÜİK) has announced the growth figures for the second quarter of 2024. Accordingly, the Turkish economy recorded a growth of 2.5 percent. Minister of Treasury and Finance Mehmet Şimşek made assessments regarding the growth figures.

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TÜİK data released: Turkish economy grew below expectations

The Turkish Statistical Institute has announced the growth figures for the Turkish economy for the second quarter of this year.

Accordingly, Turkey grew by 2.5 percent in the second quarter.

Economists had projected that the Turkish economy would grow by 3 percent in the second quarter of this year.

INDUSTRY CONTRACTED

When examining the activities that make up the GDP; in the second quarter of 2024, compared to the previous year, as a chained volume index; other service activities increased by 7.4 percent, construction by 6.5 percent, the agricultural sector and real estate activities by 3.7 percent, information and communication activities as well as finance and insurance activities by 3.4 percent, public administration, education, human health and social work activities by 3.2 percent, services by 2.9 percent, and professional, administrative and support service activities by 0.6 percent. The industrial sector, however, decreased by 1.8 percent.

The seasonally and calendar-adjusted GDP chained volume index increased by 0.1 percent compared to the previous quarter. The calendar-adjusted GDP chained volume index increased by 2.8 percent in the second quarter of 2024 compared to the same quarter of the previous year.

The Gross Domestic Product estimate by production method increased by 78.6 percent at current prices in the second quarter of 2024 compared to the same quarter of the previous year, reaching 9 trillion 949 billion 792 million TL. The second-quarter value of GDP at current prices amounted to 308 billion 158 million US dollars.

HOUSEHOLD FINAL CONSUMPTION EXPENDITURES INCREASED

Final consumption expenditures of resident households increased by 1.6 percent as a chained volume index in the second quarter of 2024 compared to the same quarter of the previous year. Government final consumption expenditures increased by 0.7 percent, and gross fixed capital formation increased by 0.5 percent.

Exports of goods and services increased by 0.04 percent as a chained volume index in the second quarter of 2024 compared to the same quarter of the previous year, while imports decreased by 5.7 percent.

LABOR PAYMENTS INCREASED BY 112.4% IN THE SECOND QUARTER OF 2024

Labor payments increased by 112.4 percent in the second quarter of 2024 compared to the same quarter of the previous year. Net operating surplus/mixed income increased by 47.7 percent.

While the share of labor payments in Gross Value Added at current prices was 33.8 percent in the second quarter of last year, this rate became 40.8 percent in 2024. The share of net operating surplus/mixed income, which was 44.6 percent, became 37.4 percent.

FIRST ASSESSMENT FROM MEHMET ŞİMŞEK REGARDING GROWTH FIGURES

Minister of Treasury and Finance Mehmet Şimşek said the following regarding the growth figures:

"Indicators point to a continued rebalancing in growth in the third quarter. We foresee a balanced growth composition where domestic demand contributes less to growth."

Stating that "We will share the Medium-Term Program (OVP) with the public soon," Şimşek added, "We will continue to take our steps decisively to consolidate the improving environment of confidence and stability and to achieve our goals."

We have left behind a challenging period in which we significantly reduced vulnerabilities.

Rebalancing in growth has begun, the current account deficit has narrowed, the risk premium has decreased, foreign resource inflows have increased, reserves have improved, and we have entered the disinflation process.

Regarding the second-quarter growth data announced today… pic.twitter.com/7oa52en0Gg
— Mehmet Simsek (@memetsimsek) September 2, 2024