UPDATE - Turkey's economy expands 7.4 percent in first quarter

UPDATE WITH MORE DETAILS AND COMMENTS FROM AN ECONOMIST

By Tuba Sahin

ANKARA (AA) - Turkish economy expanded by 7.4 percent in the first quarter of this year compared with the same period last year, the Turkish Statistical Institute (TurkStat) revealed on Monday.

The three-month gross domestic product (GDP) at current prices climbed to around 792.7 billion Turkish liras (nearly $207.5 billion), according to TurkStat data.

A group of 19 experts questioned by Anadolu Agency on Friday expected the Turkish economy to grow by 6.9 percent in the first quarter of 2018.

The total value-added services and industry rose by 10 percent and 8.8 percent, respectively, while the construction sector saw a 6.9 percent rise. The agricultural sector posted a 4.6 percent hike from January to March, compared to the same period in 2017.

Muammer Komurcuoglu, an economist at IS Investment, said in a client note the economy maintained its strong growth through sizeable support from domestic consumption.

Komurcuoglu said the figure showed that investments had strengthened in the first quarter.

He added that leading indicators suggested a loss of momentum as of the second quarter.

Turkey's GDP was 3.1 trillion Turkish liras (nearly $850.7 billion) last year, up from 2.6 trillion Turkish liras (approximately $860 billion) in 2016.

The U.S. dollar/Turkish lira exchange rate was 3.64 on average last year while one dollar was traded for 3.03 Turkish liras in 2016.

According to the TurkStat's revised data, the country's economy grew by 7.4 percent, year-on-year, last year, which was the highest annual growth rate since 2013; it was 3.2 percent in 2016.

The government is aiming for 5.5 percent annual economic growth through 2020 under its medium-term program.