Turkiye's Economy Grows 2.3% In Q2 As Agriculture And Tech Lead Expansion

(MENAFN- AzerNews) The Turkish Statistical Institute (TÜİK) has released its preliminary Gross Domestic Product (GDP) figures for the second quarter of 2026, showing that the Turkish economy grew by 2.3% year-on-year in terms of the chained volume index.

Among the activities contributing to GDP, agriculture, forestry and fishing recorded the strongest annual growth, rising by 13.3% in the second quarter of 2026 compared with the same period of the previous year, according to the chained volume index.

Information and communication activities increased by 8.6%, making the sector one of the fastest-growing parts of the Turkish economy. Public administration, education, human health and social work activities rose by 4.0%, while taxes and subsidies on products increased by 3.3%.

Other services activities grew by 3.2%, followed by industry, which expanded by 2.4%. Financial and insurance activities and real estate activities each increased by 2.1%.

Professional, administrative and support service activities rose by 2.0%, while trade, transportation, accommodation and food services recorded a more limited increase of 0.5%.

Construction was the only major activity listed in the data to contract, declining by 1.9% year-on-year.

On a quarterly basis, the seasonally and calendar-adjusted GDP chained volume index increased by 1.1% compared with the previous quarter.

The calendar-adjusted GDP chained volume index also increased by 2.3% in the second quarter of 2026 compared with the same quarter of the previous year.

According to the production approach, Turkiye's GDP at current prices increased by 36.0% in the second quarter of 2026 compared with the same quarter of 2025, reaching 19 trillion 869 billion 747 million Turkish lira.

The value of GDP in the second quarter was equivalent to $438 billion 347 million when measured in current U.S. dollar terms.

The figures reflect the significant difference between nominal and real economic growth, with inflation continuing to have a major effect on current-price values.

Domestic consumption continued to provide support to economic activity during the quarter.

Final consumption expenditure by resident households increased by 3.5% in the second quarter of 2026 compared with the same quarter of the previous year, based on the chained volume index.

Government final consumption expenditure, however, declined by 1.8%.

Gross fixed capital formation increased by 0.6% during the same period, indicating a relatively modest expansion in investment activity.

Foreign trade made a negative contribution to the annual growth picture in the second quarter.

Exports of goods and services decreased by 3.4% compared with the same quarter of the previous year, according to the chained volume index.

Imports declined even more sharply, falling by 6.4%.

The contraction in both exports and imports points to weaker external trade activity during the quarter, while the larger decline in imports also affected the composition of overall domestic demand.

Labour payments recorded a substantial increase in current-price terms during the second quarter.

Labour payments rose by 36.7% in the second quarter of 2026 compared with the same period a year earlier.

Net operating surplus/mixed income increased by 38.7%.

Despite the increase in labour payments, their share of gross value added changed only slightly.

The share of labour payments in gross value added at current prices stood at 38.3% in the second quarter of 2025. This declined slightly to 38.1% in the second quarter of 2026.

Meanwhile, the share of net operating surplus/mixed income increased from 41.3% in the second quarter of 2025 to 41.6% in the second quarter of 2026.

The second-quarter figures therefore present a mixed picture of the Turkish economy. Overall GDP continued to expand, with agriculture and information and communication activities recording particularly strong growth. Household consumption also remained positive, while construction contracted and foreign trade weakened.

The 8.6% annual expansion in information and communication activities stands out among the sectoral figures, highlighting the continued importance of technology and digital services within Turkiye's broader economic structure.

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