Turkish economy expands by 2.1 percent in third quarter

Türkiye's economy grew by 2.1 percent in the third quarter of 2024, according to data released by the Turkish Statistical Institute (TÜİK) on Nov. 29.

While the growth reflects moderate progress, it aligns with projections made during the country's ongoing disinflation policies.

Treasury and Finance Minister Mehmet Şimşek commented on the results, emphasizing the balanced nature of growth during this period.

"Growth during the disinflation process is moderate and balanced in line with our projections. We expect economic activity to gain momentum starting from the second half of next year, thanks to increased predictability with the decline in inflation, the recovery in our trading partners, the improvement in global trade and supportive global financial conditions," he said.

"We will continue to work for sustainable, high and inclusive growth, taking into account the welfare of all segments of society," Şimşek added.

The construction sector stood out as a major contributor, growing by 9.2 percent. Positive growth was also seen in financial and insurance activities (6.2 percent), agriculture, forestry, fishing (4.6 percent) and real estate activities (2.5 percent). However, some sectors faced contractions, including other service activities (-2.4 percent), the industry sector (-2.2 percent), and professional, administrative and support services (-0.3 percent).

On a quarterly basis, GDP declined slightly by 0.2 percent, whereas year-on-year growth stood at 1.9 percent. Household consumption saw an increase of 3.1 percent, while government expenditure contracted by 0.9 percent. Gross fixed capital formation also dipped by 0.8 percent.

Exports of goods and services rose modestly by 0.8 percent, while imports fell...