Turkey’s economy grew by 3.7% year-on-year in the third quarter, according to data released on 1 December by the Turkish Statistical Institute (TÜİK). The figure confirms a slowdown in the Eurasian country’s GDP growth due to a sharp slump in production in the agricultural sector, as well as the central bank’s restrictive monetary policy to combat inflation and weaker domestic demand.
According to the report, compared to previous periods, Turkish GDP grew by 4.9% in the second quarter – revised up from 4.8% – and by 2.5% in the first quarter of the year. However, between July and September – a period in which agricultural activity has a notable weight in GDP – economic activity was affected by the sharp fall in the agriculture, forestry and fishing sector, which fell by 12.7% due to the historic frosts and the severe drought that has hit the country.
In contrast, industrial production showed greater strength, with an annual increase from 6% to 6.5%. Within the sector, manufacturing output grew by 7.7% year-on-year after 6.9% in the previous quarter. Construction also maintained its strong dynamism, rising from 11.1% in the second quarter to 13.9% in the third quarter.
Household final consumption expenditure increased by 4.8% y-o-y in the third quarter of 2025, while government spending rose by 0.8% and gross capital formation (the value of investments made in the country) soared by 11.7%. At the same time exports fell by 0.7%, while imports of goods and services rose by 4.3%.
“We expect growth to remain moderate in the last quarter and to slightly exceed the Medium-Term Programme in 2025,” said Turkey’s Finance Minister Mehmet Şimşek, assessing the latest data on the Turkish economy. According to Şimşek, more favourable financial conditions and a supportive global environment will drive stronger economic growth in 2026. The government’s economic programme foresees 3.3% growth by 2025.
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Edited and reviewed by:
Pablo Gómez is a specialist in Turkey and has been editor-in-chief of Hispanatolia since 2011. He has been analysing current affairs and geopolitics in Turkey and the surrounding region since 2006.
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