Turkey's Economy Grows Below Expectations in the Third Quarter

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Turkey's Economy Grows Below Expectations in the Third Quarter

In the third quarter of 2024, the gross domestic product (GDP) increased by 2.1%. Expectations in the Foreks News survey indicated that the growth would be 2.4%.

According to the announcement by the Turkish Statistical Institute (TÜİK), when examining the activities that constitute the GDP, in the third quarter of 2024, the chained volume index compared to the previous year showed the following changes: construction increased by 9.2%, financial and insurance activities by 6.2%, the agricultural sector by 4.6%, real estate activities by 2.5%, taxes on products minus subsidies by 2.3%, information and communication activities by 2.2%, public administration, education, human health and social service activities by 1.9%, and services by 1.4%. Other service activities decreased by 2.4%, the industrial sector by 2.2%, and professional, administrative, and support service activities by 0.3%.

The seasonally and calendar-adjusted GDP chained volume index decreased by 0.2% compared to the previous quarter. The calendar-adjusted GDP chained volume index increased by 1.9% in the third quarter of 2024 compared to the same quarter of the previous year.

Using the production method, the estimation of Gross Domestic Product for the third quarter of 2024 increased by 53.3% in current prices compared to the same quarter of the previous year, reaching 11 trillion 893 billion 252 million TL. The GDP value for the third quarter in current prices was 357 billion 989 million US dollars.

  • Household final consumption expenditures increased by 3.1% in the third quarter of 2024 - Final consumption expenditures of resident households increased by 3.1% in the third quarter of 2024 compared to the same quarter of the previous year according to the chained volume index. The government’s final consumption expenditures decreased by 0.9%, and gross fixed capital formation decreased by 0.8%.

  • Exports of goods and services increased by 0.8% while imports decreased by 9.6% in the third quarter of 2024 - Exports of goods and services increased by 0.8% in the third quarter of 2024 compared to the same quarter of the previous year according to the chained volume index, while imports decreased by 9.6%.

  • Labor payments increased by 76.3% in the third quarter of 2024 - Labor payments increased by 76.3% in the third quarter of 2024 compared to the same quarter of the previous year. Gross operating surplus/mixed income rose by 45.7%. The share of labor payments in Gross Value Added was 36.4%.

The share of labor payments in Gross Value Added at current prices was 31.9% in the third quarter of the previous year, while this rate increased to 36.4% in 2024. The share of gross operating surplus/mixed income, on the other hand, decreased from 47.8% to 45.1%.