Macro Indicators

3/31/2017

The Turkish Economy Grew by 2.9 Percent in 2016

Gross Domestic Product (GDP) displayed a growth rate of 3.4 percent in the 4th quarter of 2016 compared to the same quarter of the previous year. GDP growing by 2.9 percent in 2016 compared to the previous year reached TL 2 trillion 590 billion 517 million

Finance Minister Ağbal: “Domestic demand which is the driving power of the economy accelerated in the last quarter and private consumption expenditures increased by 5.7 percent. The fact that investments increased by 2 percent in the given period has utmost importance for the economic outlook. Public expenditures have also continued to make a positive contribution to economic growth.”

Turkish Statistical Institute (TÜİK) disclosed the growth data regarding the Turkish economy for the 4^th quarter of 2016 (October-December). According to the report, Gross Domestic Product (GDP) displayed a growth rate of 3.4 percent in the 4^th quarter of 2016 compared to the same quarter of the previous year.

The growth rate for 2016 has also been determined in line with data regarding the last quarter of 2016. The Turkish economy grew by 2.9 percent compared to the previous year and GDP reached TL 2 trillion 590 billion 517 million. Per capita GDP in 2016 has been calculated as TL 32,676 with current prices and as $ 10,807 in terms of US Dollars.

The total added value of the agricultural sector to GDP growth in 2016 decreased by 4.1 percent, whereas the total added value of the industrial sector increased by 4.5 percent, the total added value of the construction sector increased by 7.2 percent and the added value of the services sector decreased by 0.8 percent.

The share of household consumption expenditures in GDP is 59.5 percent

The share of household consumption expenditures in GDP is recorded as 59.5 percent in 2016, the share of fixed capital formation as 29.8 percent and the share of final consumption expenditures of the state as 14.7 percent.

The share of final household consumption expenditures in GDP for the year 2016 increased by 2.3 percent, besides an increase of 7.3 percent in the share of final consumption expenditures of the state and an increase of 3 percent in gross fixed capital formation. Exports of Commodities and Services on the other hand fell by 2 percent.

Deputy Prime Minister Şimşek, “We observe an increase in household consumption and investment expenditures of the state”

Deputy Prime Minister Mehmet Şimşek made the following statement in relation with the growth rate: “There has been a rapid recovery in 2016. It has been minus 1.3 percent in the third quarter but it has recovered starting from the fourth quarter and the recovery is wide spread. We observe an increase in household consumption and investment expenditures of the state. The recovery has thus been rapid and Turkey did not face a recession in technical terms which is very important. Narrowing in two consecutive quarters is necessary for a recession. This actually displays how strong are the foundations of the Turkish economy.” Şimşek also said that the growth trend also continued in the first quarter.

Finance Minister Ağbal: “Domestic demand which is the driving power of the economy accelerated in the last quarter and private consumption expenditures increased by 5.7 percent”

On the other hand, Finance Minister Naci Ağbal spoke as follows: “The economy grew by 3.5 percent in the fourth quarter over expectations with the effect of decisions taken by us as the economy administration after a narrowing in the third quarter of 2016. This has displayed how strong are the foundations of the Turkish economy sustaining a dynamic growth structure. Domestic demand which is the driving power of the economy accelerated in the last quarter and private consumption expenditures increased by 5.7 percent. The fact that investments increased by 2 percent in the given period has utmost importance for the economic outlook. Public expenditures have also continued to make a positive contribution to economic growth.

The positive outlook in the global climate besides incentives which we implemented as the economy administration and structural reforms which we have realized will support the acceleration of growth also in 2017. As a matter of fact, pioneering indicators both from the production and the consumption channels for the first quarter of 2017 give positive signals regarding the economy.”