Turkey’s Economy Surpasses Expectations with Robust Growth in Q1 2024
Turkey’s Vice President Cevdet Yılmaz announced that the country’s economy exceeded expectations in the first quarter of 2024. Yılmaz stated that the economy grew by 5.7% compared to the same period last year and 2.4% compared to the previous quarter. This growth pushed the annualized gross domestic product (GDP) to a historic high of $1.158 trillion.
Emphasizing the sustainability of economic growth, Yılmaz said, “We have maintained our growth performance uninterrupted for 15 quarters in an environment where predictability in our economy is ensured under political stability and confidence.” He highlighted that despite challenges such as the earthquake disaster, declines in global economic demand, and geopolitical adversities, Turkey’s economy continued its strong performance.
In the first quarter of 2024, positive growth was recorded in the agriculture, industry, and services sectors. Agriculture grew by 4.6%, industry by 4.9%, construction by 11.1%, and services by 4.8%. The increase in investments indicated a healthy growth composition in the economy. Fixed capital investments increased by 10.3%, while machinery and equipment investments also rose by 11.9%, continuing their uninterrupted growth. Net exports contributed positively to growth after five quarters.
Cevdet Yılmaz noted that the share of labor in the national income continued to rise, increasing to 37% from 33.8% in the first quarter of 2024. The share of gross value added rose to 42% from 37.8%.
Sharing the information that they have entered a period where the current account deficit has decreased, reserves have increased, and risk indicators have improved, Yılmaz said, “The results we achieved on a monthly basis in the fight against inflation will bring significant annual declines in the second half of the year. Unemployment continues to remain in single digits.”
Yılmaz emphasized that they will continue to implement the Medium Term Program decisively, aiming for balanced and inclusive growth with stability for a lasting increase in welfare.
Source: The Office of the Vice President of Turkey.