The Turkish economy grew by 3.2% in 2024, exceeding analysts’ expectations despite the high interest rates set by the Turkish Central Bank to contain inflation, and driven mainly by domestic demand, according to the latest report published today by the Turkish Statistical Institute (TÜİK).
The report, presented today by TÜİK, indicates that, in constant prices, the Gross Domestic Product (GDP) of Turkey reached $1.32 trillion while per capita income reached $15,463. Market forecasts had predicted that, on average, the Turkish economy would grow by 3.1% in 2024.
During the fourth quarter of 2024, Turkey’s GDP grew by 3%, also slightly exceeding economists’ expectations; the Eurasian country’s GDP grew by 5.4% in the first quarter of last year, 2.4% in the second quarter, and 2.2% between July and September. In 2023, the Turkish economy grew by 4.5%.
By sector, the manufacturing industry expanded by an average of 0.5% last year, reaching 1.4% in the last quarter of 2024, although manufacturing production fell by 0.2% last year. Agriculture and farming grew by 3.9% in 2024 (4.7% in the fourth quarter), while construction increased by 9.3% throughout last year.
Domestic consumption, the driving force behind the Turkish economy
One of the main factors driving the growth of Turkish GDP in 2024 was domestic consumption. Data presented by TÜİK indicates that consumption by Turkish households increased by an average of 3.7% throughout last year, going from a growth of 2.6% in the third quarter to an increase of 3.9% year-on-year in the fourth and final quarter of the year.
In a statement issued after the release of the economic growth figures, Finance Minister Mehmet Şimşek emphasised that under ‘more favourable financial conditions’ and as the process of disinflation in Turkey progresses and the effects of the government’s current economic policies consolidate, ‘there will be a positive impact on economic activity’. ‘So far we have achieved significant success in many areas with our economic programme, we have reduced our vulnerabilities and strengthened our macroeconomic foundations,’ said Şimşek.
By 2025, the Ankara government expects the Turkish economy to grow by 4% and per capita income to increase to $17,028, while the forecast for growth in 2026 is up to 4.5%.
VOTE
EDITORIAL TEAM
🧿 About us
.
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.
…
📣 Your ADVERTISING on Hispanatolia
.
🤗 HELP US WITH A DONATION:
💗 Paypal
