Macro Indicators

6/12/2017

Turkish Economy Grew by 5 Percent in the First Quarter of 2017

The total added value in the agricultural sector increased by 3.2%, also increasing by 5.3% in the industrial sector and 3.7% in the construction sector. Final consumption expenditures of households increased by 5.1% and final consumption expenditures of the State by 9.4% besides an increase of 2.2% in gross fixed capital assets

Finance Minister Ağbal: “Incentives such as provisional tax cuts, the Credit Guarantee Fund, KOSGEB (Small & Medium Sized Enterprises Development and Support Administration), premium offsetting, investment incentives and employment support mechanisms which we have implemented as the Government have supported the increase in investments, production, exports and employment and have triggered the domestic demand.”

Turkish Statistical Institute (TÜİK) disclosed the growth data regarding the Gross Domestic Product (GDP) for the first quarter of 2017. According to the report, the chain index volume (2009=100) of the GDP increased by 5% in the first quarter of 2017 compared to the same period of the previous year.

The estimated domestic product based on production is calculated as TL 641 billion 584 million in the first quarter of 2017 increasing by 14.3%.

Taking a look at the activities constituting the gross domestic product and in terms of the chain index volume of the GDP, the total added value in the agricultural sector increased by 3.2 %, also increasing by 5.3% in the industrial sector and 3.7% in the construction sector. The cumulative added value of the services sector increased by 5.2% consisting of the activities in trade, transportation, accommodation and food & beverages.

The domestic demand has once more been the determining factor in growth

It is observed that the domestic demand has once more been the determining factor considering the growth rates in terms of expenditures.

It is determined that final consumption expenditures of households increased by 5.1% and final consumption expenditures of the state by 9.4% besides an increase of 2.2% in gross fixed capital assets.

Finance Minister Naci Ağbal made the following disclosure in relation with the growth rate:

“Net exports that made a negative contribution last year has this time made a positive contribution to growth. Also, investments that increased by 2.2% in the first quarter will further support the growth rate in the remaining period of the year also accompanied by the strengthening political and economic stability. Private consumption expenditures in the first quarter increased by 5.1% alongside public expenditures that realized at a level of 9.4%. Private consumption expenditures will continue to support economic growth also in the following quarters of the year by means of seasonal tax cuts we have implemented. The growth data which have been disclosed as of today have once displayed how relevant the fiscal incentives are which we have implemented such as provisional tax cuts, the Credit Guarantee Fund, KOSGEB (Small & Medium Sized Enterprises Development and Support Administration), premium offsetting, investment incentives and employment support mechanisms which we have implemented as the Government. These incentives have supported the increase in investments, production, exports and employment and have triggered the domestic demand.”