Turkey’s economy expanded at 5.1% y/y in the second quarter of this year, data from national statistics office TUIK showed on September 11.
This was just below the market expectations for growth of 5.3% y/y. TUIK revised the Q1 growth figure to 5.2% from the previously announced 5%.
TUIK also revised GDP growth for 2016 to 3.2% from 2.9%.
On the consumption side, households’ final consumption rose by 3.3% y/y in the second quarter, slowing from the 3.6% y/y growth in the first quarter while government expenditure declined by 4.3% y/y in Q2 after rising 9.7% y/y in Q1. Gross fixed capital formation advanced 9.5% y/y in Q2, up from 3% y/y in the previous quarter.
Exports grew 10.5% in the second quarter versus 10.9% y/y in Q1 while imports increased by 2.3% y/y after rising 0.7% y/y in Q1.
On the production side, output growth of the agriculture sector accelerated to 4.7% y/y in Q2 from 1.7% y/y in Q1. The production of the industrial sector, which rose 6.7% y/y in Q1, increased by 6.3 y/y in the second quarter while manufacturing output was up by 6% y/y in the quarter versus 5.9% y/y expansion in Q1.
TUIK reported last week that the calendar-adjusted industrial production index gained 14.5% y/y in July, accelerating from the 3.5% y/y rise recorded in the previous month while the manufacturing PMI reached a 77-month high of
Data also showed that the construction sector grew by 6.8% y/y in Q2, accelerating from 6% y/y in the previous quarter.
A recovery in tourism revenues, higher exports and a low base effect will give a further boost to economic growth in the third quarter, Finance Minister Naci Agbal said on September 11, commenting on the latest GDP figures.