Turkish economy grew 4.5 percent last year

The Turkish economy grew by 4.5 percent last year after expanding 5.5 percent in 2022, the data from the Turkish Statistical Institute (TÜİK) have shown, slightly exceeding the government's forecast.

In the medium-term program, the government had predicted a growth rate of 4.4 percent for 2023.

Indicators show that the balancing of the economy and the improvement in the current account deficit continue, Finance Minister Mehmet Şimşek said in a written statement, commenting on the latest growth data.

"We expect a moderate and balanced growth in 2024, with net foreign demand making a positive contribution to the economic growth," he added.

The minister stressed that domestic demand's contribution to growth declined to 6.6 points in the second half of 2023 from 8.8 percent in the first half.

"The improved composition of growth due to the policies will implement will make a great contribution to the disinflation process," Şimşek said.

At current prices, the size of the Turkish economy reached $1.12 trillion, rising from $906 billion in 2022.

The per capita income in Türkiye was $13,110, TÜİK said on Feb. 29.

In the final quarter, the annual growth was 4.1 percent, easing from a revised 6.1 percent growth in the third quarter of 2023. On a seasonally and calendar-adjusted basis, the country's GDP expanded by 1 percent in the fourth quarter of last year, accelerating from the 0.3 percent increase in the third quarter.

Consumer spending was one of the main drivers of economic growth in 2023 and the fourth quarter of last year.

The final consumption expenditure of households, which accounted for 59.1 percent of the GDP, rose 12.8 percent in the whole of 2023. In the final quarter of last year, those...