Turkish economy expands by 5.7% in first quarter

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

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

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

"With our rational, predictable and rule-based policies, our economy is moving toward more balanced and sustainable growth," said Mehmet Simsek, the treasury and finance minister, adding that Türkiye is taking decisive steps toward its goals.

He stressed that the contribution of net external demand to growth was positive by 1.6 points after five quarters, and that the seasonally adjusted unemployment rate fell to 8.7 percent, the lowest level in 44 quarters.

Disinflation

Simsek expressed that the ministry foresees a positive contribution from net external demand to growth this year, "with more supportive external conditions and moderate domestic demand in the second half".

"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," he added.

The Turkish Trade Ministry recalled that the country's economy has progressed for the last 15 quarters. In the last quarter of 2023, the country's GPD increased by four percent.

With the last figure, 5.7 percent, 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 country's vice president, also said on X that Türkiye's annualised GDP reached a historically 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 monthly to bring down inflation 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.