Türkiye's Economy Posts 4.8 Percent Growth in Q2

(MENAFN) Türkiye's economy accelerated sharply in the second quarter of 2024, expanding 4.8% year-on-year and surpassing analyst expectations, according to the latest data from the Turkish Statistical Institute released Monday.

Gross domestic product (GDP) measured at current prices soared 43.7% to reach 14.62 trillion Turkish liras ($377.6 billion) in April through June. This follows a more modest 2% growth in the first quarter of the year.

Last week, economists surveyed by media had projected a 3.87% GDP increase, underscoring the stronger-than-anticipated performance. On a quarterly basis, Türkiye’s GDP rose 1.6% during Q2, slightly below the 1.7% growth in the previous quarter.

Describing the results as remarkable, Mehmet Şimşek, Türkiye's treasury and finance minister, highlighted on the Turkish social platform NSosyal: “Türkiye continues to grow and the inflation continues to fall despite challenging global conditions.”

He emphasized the manufacturing sector’s impressive output, noting it delivered its “best performance in 12 quarters,” driven by a surge in high-tech production. Şimşek added that consumption and investment remained on a balanced path.

Despite subdued growth of roughly 2% among Türkiye’s trading partners and front-loaded demand, the current account deficit-to-GDP ratio held steady at a sustainable annual level of 1.3%, he said.

Şimşek further stated: “We have reached a significant milestone in achieving the ultimate goal of our program: sustained prosperity growth. According to the World Bank classification, our likelihood of joining the high-income countries group in 2025 has increased.”

He also announced that the government will soon release its Medium-Term Program for 2026-2028, aimed at building on these economic gains.

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