Turkiye's Economy Grows by 4.8% in Q2, Exceeding Expectations
Turkish Statistical Institute reports a stronger-than-expected GDP growth in the second quarter.
Turkiye’s economy surged ahead with a 4.8 percent growth rate in the second quarter of the year, surpassing economic forecasts that had predicted a more modest expansion.
The data, released by the Turkish Statistical Institute (TSI) on Monday, reveals the robust performance of the country's economy despite prolonged monetary tightening measures.The TSI reported that the gross domestic product (GDP) for the second quarter expanded by 1.6 percent compared to the previous quarter after adjusting for seasonal and calendar variations.
Economists attribute this growth in part to a higher number of working days during the quarter as well as last year’s low base, which provided a favorable comparison.In a recent Reuters poll, economists had predicted the economy would grow by 4.1 percent in the second quarter, with an overall projection of 2.9 percent for the entirety of 2025.
The Turkish government has forecasted a growth rate of 4 percent for the year, with an update expected early this month to reflect any revisions.The initial GDP estimate for the first quarter was revised upward from 2 percent to 2.3 percent following adjustments in the data release.
Additionally, the growth figure for last year was slightly adjusted up to 3.3 percent from its previously reported 3.2 percent.As part of an ongoing effort to align with the European System of National Accounts (ESNA), the TSI also published a detailed document on the revision of its GDP series.The Central Bank of Turkiye initiated a policy easing cycle in December, following eight months of maintaining steady interest rates.
This shift came after inflation had peaked at 75 percent last year but has since decreased to around 33 percent as tighter monetary policy was implemented in April to stabilize market conditions following political turmoil related to the arrest of Istanbul Mayor Ekrem Imamoglu.In response to these changes, the Central Bank returned to a more accommodative monetary stance in recent months, reflecting its assessment that previous tight policy measures had contributed to a slowdown in demand conditions.
The data, released by the Turkish Statistical Institute (TSI) on Monday, reveals the robust performance of the country's economy despite prolonged monetary tightening measures.The TSI reported that the gross domestic product (GDP) for the second quarter expanded by 1.6 percent compared to the previous quarter after adjusting for seasonal and calendar variations.
Economists attribute this growth in part to a higher number of working days during the quarter as well as last year’s low base, which provided a favorable comparison.In a recent Reuters poll, economists had predicted the economy would grow by 4.1 percent in the second quarter, with an overall projection of 2.9 percent for the entirety of 2025.
The Turkish government has forecasted a growth rate of 4 percent for the year, with an update expected early this month to reflect any revisions.The initial GDP estimate for the first quarter was revised upward from 2 percent to 2.3 percent following adjustments in the data release.
Additionally, the growth figure for last year was slightly adjusted up to 3.3 percent from its previously reported 3.2 percent.As part of an ongoing effort to align with the European System of National Accounts (ESNA), the TSI also published a detailed document on the revision of its GDP series.The Central Bank of Turkiye initiated a policy easing cycle in December, following eight months of maintaining steady interest rates.
This shift came after inflation had peaked at 75 percent last year but has since decreased to around 33 percent as tighter monetary policy was implemented in April to stabilize market conditions following political turmoil related to the arrest of Istanbul Mayor Ekrem Imamoglu.In response to these changes, the Central Bank returned to a more accommodative monetary stance in recent months, reflecting its assessment that previous tight policy measures had contributed to a slowdown in demand conditions.
