Türkiye's economy grew 3.8% year-on-year in 2nd quarter of 2023

The performance of the Turkish economy for the second quarter of the year, covering the months of April, May, and June, has been announced.

According to the data from the Turkish Statistical Institute (TÜİK), the first estimate of the GDP for the second quarter of 2023 indicates a 3.8% increase in chained volume index compared to the same quarter of the previous year.

When examining the activities that constitute GDP, in the second quarter of 2023 compared to the previous year, the chained volume index shows the following changes: other services activities increased by 6.6%, services by 6.4%, construction by 6.2%, public administration, education, human health, and social work activities by 5.1%, finance and insurance activities by 4.9%, real estate activities by 3.2%, information and communication activities by 1.3%, and the agriculture sector by 1.2%. However, industry decreased by 2.6%, and professional, administrative, and support services decreased by 1.2%. The seasonally and calendar-adjusted chained volume index of GDP increased by 3.5% compared to the previous quarter. The seasonally and calendar-adjusted chained volume index of GDP increased by 5.0% in the second quarter of 2023 compared to the same quarter of the previous year.

The estimate of Gross Domestic Product by production approach shows that in the second quarter of 2023, in current prices, it increased by 60.7% compared to the same quarter of the previous year, reaching 5 trillion 502 billion 192 million TL. The value of GDP in the second quarter, in current prices and based on US dollars, was realized as 271 billion 468 million.

The final consumption expenditures of resident households increased by 15.6% in the second quarter of 2023, compared to the same quarter of the previous year, in chained volume index. Government final consumption expenditures increased by 5.3%, and gross fixed capital formation increased by 5.1%.

The share of labor compensation within Gross Value Added at current prices increased from 25.3% in the second quarter of the previous year to 34.3% in 2023. The share of net operating surplus/mixed income decreased from 53.3% to 43.8%.

The Turkish economy had recorded a growth rate of 7.8% in the same quarter of the previous year and 4% in the first quarter of 2023.