Turkish economy hit 5.9% growth in Q3

Türkiye's gross domestic product (GDP) rose 5.9% in the third quarter of this year, the country's statistical authority said on Thursday.

According to the Turkish Statistical Institute (TurkStat), the country's GDP totaled 7.68 trillion Turkish liras ($295.8 billion) at current prices this July-September.

"The value added increased by 8.1% in construction, 5.7% in (the) industry sector, 5.1% in financial and insurance, 4.3% in services, 3.6% in public administration, education, human health and social work activities, 2.7% in real estate activities, 2.2% in other service activities, 1.7% in information and communication and 0.3% in agriculture, forestry and fishing," TurkStat said.

TurkStat said over the same period final consumption expenditures of resident households rose 11.2%, government final consumption expenditures 5.3%, and gross fixed capital formation 14.7%.

Imports of goods and services soared 14.5% while exports of goods and services climbed 1.1% year-on-year in the third quarter.

Earlier this year the Turkish economy grew 4% in the first quarter and 3.9% in the second, while last year it racked up growth of 5.5%.

Commenting on the figures, Mehmet Şimşek, the Turkish Treasury and finance minister, said: "As envisaged in our program, we are moving towards a more balanced composition in growth."

Compared to the first half of the year, the contributions of domestic demand to growth fell, while the negative contribution of net exports decreased relatively, he noted.

Compared to the previous quarter, private consumption contracted, while investment and exports grew, he added.

Şimşek pledged: "We will continue to implement our predictable, rule-based policies until inflation and the current account deficit fall permanently and macro-financial stability is achieved.

"We will implement structural reforms to increase productivity. Thus, we will strengthen the foundations of sustainable high growth."