Turkish economic growth shows strong recovery in second quarter

The Turkish economy expanded 5.1 percent year-on-year in the second quarter of the year, official data showed on Sept. 11, showing a strong recovery in investments and exports, helped by the government's fiscal stimulus measures after growth was hit last year by an attempted coup.

First quarter growth was also revised up to 5.2 percent from an initially reported 5 percent, while 2016 growth was revised up to 3.2 percent from an initial 2.9 percent. 

Growth was driven by all main sectors in the second quarter, with the agricultural sector expanding by 4.7 percent, the manufacturing industry by 6.3 percent, the construction sector by 6.8 percent and the services sector by 5.7 percent, the Turkish Statistics Institute (TÜİK) said in a statement. 

"Leading indicators regarding the third quarter show that strong economic growth is continuing and gaining momentum," Deputy Prime Minister Mehmet Şimşek said in a written statement following the data.

Expansion of the state Credit Guarantee Fund (KGF) had begun to support growth from the second quarter, he also said. 

In March the government increased the size of the fund, which guarantees loans to small and medium-sized enterprises, more than tenfold to 250 billion liras ($70 billion). 

"While domestic demand made a 3.2 percent contribution to the GDP growth, the contribution of the net foreign demand was 1.8 percent. Preliminary indicators have also showed that the economic growth would continue in the third quarter as well," Şimşek noted, adding that a strong growth was positive but not enough by itself.

"Our main priority is to maintain an inclusive growth," he said. 

While household final consumption expenditure increased by 3.2 percent, the...