UPDATE - Türkiye's economy grows 3.8% in 2nd quarter, above market forecast

UPDATES WITH MORE DETAILS

By Tuba Ongun

Türkiye's economy grew 3.8% year-on-year in the second quarter of 2023, better than the market forecast, according to data released by the country's statistical authority on Thursday.

The country's gross domestic product at current prices surged 60.7% from last year to 5.5 trillion Turkish liras ($271.5 billion) in the April-June period, the Turkish Statistical Institute (TurkStat) said.

Economists had expected Türkiye's economy would grow 3.5% on an annual basis in the second quarter.

The figure followed a downwardly-revised 3.9% annual growth in the first quarter of 2023.

On a quarterly basis, the Turkish economy grew 3.5% in the three months to June, shifting from a 0.1% contraction in the previous period.

Value added increased the most among the services – wholesale and retail trade, transport, storage, accommodation, and food service activities – constituting a gross domestic product of 6.4% year-on-year in April-June.

The figures increased by 6.2% in the construction sector and 1.2% in agriculture, but decreased by 2.6% in industry during the same period.

Imports of goods and services soared 20.3% in the three-month period compared to last year, while exports of goods and services plunged 9%.

The final consumption expenditures of resident households hiked 15.6% in the second quarter of 2023.

Government final consumption expenditure grew by 5.3% in the same period.

TurkStat also said that Türkiye's annual GDP growth rate for 2022 was revised slightly downwards to 5.5%.