Announced Growth Figures

The Turkish Statistical Institute (TUIK) announced the economic growth figures for the first quarter of 2023.

Gross Domestic Product (GDP) increased 4.0 percent in the first quarter of 2023. First quarter estimate of GDP for 2023; As a chained volume index, it increased 4.0 percent compared to the same quarter of the previous year.

The seasonally adjusted and calendar-adjusted chain volume index of GDP increased by 0.3 percent compared to the previous quarter. The calendar-adjusted GDP chained volume index increased by 3.8% in the first quarter of 2023 compared to the same quarter of the previous year.

Economists participating in the AA Finans Growth Outlook Survey had forecast that the Turkish economy would grow by 3.74 percent in the first quarter of the year. The average expectation in the Reuters poll was 3.9 percent.

According to the data, while the national income in 12 months reached 970 billion dollars, the per capita income was 11 thousand 374 dollars.

WHICH SECTORS ARE GROWING HOW MUCH?

When examining the activities that make up GDP; In the first quarter of 2023, the growth rates over the previous year were as follows:

Services 12.4 percent, professional, administrative, and auxiliary service activities 12.0 percent, financial and insurance activities 11.2 percent, information and communication activities 8.1 percent, other service activities 7.8 percent, construction 5.1 percent activities of public administration, education, human health and social work increased by 3.6 percent and real estate activities increased 1.4 percent. The agricultural sector decreased by 3.8 percent and industry by 0.7 percent.

GDP WAS 4.63 BILLION TL IN THE FIRST QUARTER OF 2023

The estimate of the Gross Domestic Product by production method increased by 84.4 percent in the first quarter of 2023, at current prices, compared to the same quarter of the previous year, and became 4 trillion 631 billion 792 million TL. The value of the GDP for the first quarter was 245 thousand 464 million US dollars at current prices.

Final consumption expenditures of resident households increased by 16.2% in the first quarter of 2023 as a chained volume index compared to the same quarter of the previous year. Government final consumption spending rose 5.3 percent, while gross fixed capital formation rose 4.9 percent.

In the first quarter of 2023, imports of goods and services increased 14.4 percent as a chain volume index compared to the same quarter of the previous year, while exports decreased 0.3 percent.

INCREASE IN LABOR PAYMENTS

Labor payments increased 126.1 percent in the first quarter of 2023 compared to the same quarter a year earlier. Net operating surplus/mixed income rose 48.7 percent.

Although the participation of labor payments in the Gross Value Added at current prices was 31.1 percent in the first quarter of last year, this relationship became 38.0 percent in 2023. Although the participation of the Net operating surplus/mixed income was 47.6% in the first quarter of last year, it became 38.2% in the first quarter of 2023.

EYT EFFECT

In addition to the faster increase in labor force payments compared to GDP, the significant increase in severance payments with the entry into force of the regulation of the Law on Social Security and General Health Insurance for the Elderly of Retirement (EYT), increased the participation of labor value-added payments.

Excluding the effect of the EYT regulation, the share of labor payments in Gross Value Added was estimated at approximately 33.5 percent.