Turkey's Economic Growth Falls Short of Expectations in the Third Quarter
The Turkish economy recorded a year-on-year growth of 2.1% in the third quarter of 2024. According to the chain volume index data, the Gross Domestic Product (GDP) increase was compared to the same quarter of the previous year. This growth rate indicates the diversity of economic activities and competitiveness. Notably, the construction sector stood out with a 9.2% increase. The performance of the construction sector during this period emerged as a significant driving force for economic growth.
Significant increase in the construction sectorThe construction sector became the locomotive of the economy by growing 9.2% in the third quarter of 2024 compared to the same period of the previous year. This increase was calculated based on the chain volume index and indicated future advancements within the sector.
This growth in the construction sector also has the potential to create employment and increase mobility in related sectors. In contrast, non-construction sectors experienced a decline of 2.2% in industry, while the services sector increased by 1.4%.
Changing performance across different economic areasFinance and insurance activities grew by 6.2%, the agriculture sector increased by 4.6%, and real estate activities rose by 2.5%. However, the industrial sector recorded a decrease of 2.2%, showcasing the varying performances of different sectors within economic growth.
The services sector, on the other hand, showed an increase of 1.4%, contributing to the expansion of economic activity. Professional, administrative, and support service activities experienced a decrease of 0.3%.
Increase in GDP at current pricesIn the third quarter of 2024, GDP at current prices increased by 53.3%, reaching 11 trillion 893 billion 252 million TL. In US dollar terms, this value was recorded as 357 billion 989 million.
Evaluating economic growth at current prices highlights the effects of price fluctuations. This provides significant insights into the overall health of the country's economy.
Moderate increase in consumption expendituresFinal household consumption expenditures rose by 3.1% in the third quarter of 2024 compared to the same period last year. However, government spending and gross fixed capital formation decreased by 0.9% and 0.8%, respectively.
These figures reflect the impacts of changes in consumption trends and public spending on the economy. The increase in private consumption expenditures can be seen as a positive development that contributes to economic vitality.
Developments in foreign tradeIn the third quarter of 2024, merchandise and service exports increased by 0.8%, while imports decreased by 9.6%. This decline in imports drew attention as a positive development in terms of foreign trade balance.
The slight increase in exports indicates the maintenance of competitiveness in international markets. The decrease in imports could also positively influence the trade deficit.
Remarkable increase in labor paymentsLabor payments increased by 76.3% in the third quarter of 2024. Net operating surplus and mixed income rose by 45.7%. The share of labor payments in Gross Value Added stood at 36.4%.
This increase reflects changes in the income shares of workers, providing significant information on how conditions in the labor market have evolved. Changes in operating surplus and mixed income are among the factors affecting the income distribution between capital and labor.