Growth figures announced

The Turkish Statistical Institute (TUIK) announced the gross domestic product data for the third quarter of 2023.

First estimate of GDP for the third quarter of 2023; As a chained volume index, it increased 5.9 percent compared to the same quarter a year ago. According to the Reuters survey, the expected annual growth in the third quarter was 5.6 percent.

In the January-September 2023 period, annual growth was 4.7 percent.

THE GREATEST GROWTH IS IN CONSTRUCTION

When examining the activities that make up GDP; As a chained volume index in the third quarter of 2023 compared to the previous year; construction 8.1 percent, industry 5.7 percent, financial and insurance activities 5.1 percent, services 4.3 percent, public administration, education, human health and social service activities 3.6 percent, real estate activities by 2.7 percent, while other service activities increased by 2.2 percent, information and communication activities by 1.7 percent and the agricultural sector by 0.3 percent, professional activities , administrative and support services decreased 2.5 percent. Product taxes less subsidies increased by 16.5 percent.

Reconstruction activities that began after the February 6 earthquakes effectively contributed to the rapid growth of the construction sector.

QUARTERLY GROWTH 0.3 PERCENT

Adjusted for seasonal and calendar effects, the GDP chained volume index increased 0.3 percent compared to the previous quarter. The calendar-adjusted GDP chained volume index increased 5.1 percent in the third quarter of 2023 compared to the same quarter a year earlier.

In the third quarter, compared to the previous quarter, agriculture grew by 0.6 percent and industry by 2.0 percent, while construction contracted by 1.3 percent and the services sector contracted 1.4 percent.

The estimate of Gross Domestic Product by production method increased by 79.8 percent at current prices in the third quarter of 2023 compared to the same quarter of the previous year, reaching 7 trillion 681 billion 432 million TL. The value of GDP for the third quarter was 295,815 million dollars at current prices.

The total value of GDP in the last four quarters was 1 trillion 75.7 billion dollars at current prices.

11.2 PERCENT INCREASE IN PRIVATE CONSUMPTION

Final consumption expenditures of resident households increased by 11.2 percent as a chained volume index in the third quarter of 2023 compared to the same quarter of the previous year. The state’s final consumption expenditures increased by 5.3 percent and gross fixed capital formation increased by 14.7 percent.

Imports of goods and services increased by 14.5 percent and exports by 1.1 percent as a chained volume index in the third quarter of 2023 compared to the same quarter of the previous year.

Labor payments increased by 117.2 percent in the third quarter of 2023 compared to the same quarter a year earlier. Net operating surplus/mixed income increased 50.7 percent.

While the share of labor payments in gross value added at current prices was 26.1 percent in the third quarter of last year, this rate reached 32.2 percent in 2023. The share of operating surplus net/mixed income decreased from 55.0 percent to 47.0 percent.

Minister of Treasury and Finance Mehmet Şimşek stated that progress is being made towards a more balanced composition of growth and said: “Compared to the first half of the year, the contribution of domestic demand to growth decreased from 8.8 points to 7.3 points, while the negative contribution The contribution of net foreign demand decreased from 4.9 points to 2.6 points. “Although private consumption decreased compared to the previous quarter, investment and exports increased,” he stated .