Turkey’s GDP grows 5.9% on strong household spending

Turkey’s economy grew by 5.9 percent in the third quarter of 2023 – the highest since the second quarter of last year – driven by strong household spending.

Gross domestic product (GDP) reached 7.68 trillion liras ($295.82 billion) at current prices, data from the Turkish Statistical Institute revealed.

The construction and industrial sectors rose by 8.1 percent and 5.7 percent, respectively. The agriculture sector expanded by just 0.3 percent, the data said.

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Household expenditure increased by 11.2 percent. Imports of goods and services jumped 14.5 percent year on year, while exports of goods and services rose 1.1 percent year-on-year.

Quarter on quarter, GDP expanded 0.3 percent on a seasonally and calendar-adjusted basis.

In a televised interview, finance minister Mehmet Şimşek said that the growth remains “strong” but there is a possibility of a slowdown in the coming period.

The GDP data stands in line with predictions in the medium-term programme for 2023, he added.

The minister reiterated that the top priority was disinflation and ensuring price stability.

S&P Global Ratings on Thursday announced it planned to revise Turkey’s sovereign credit outlook to positive from stable, reaffirmed its rating at “B.”