NEWS ECONOMY NEWS        02/09/2019

Turkey’s economy contracted by 1.5% in the second quarter of 2019

According to figures prepared by the Turkish Statistical Institute (TÜİK – TurkStat), Turkey’s gross domestic product (GDP) fell by 1.5% in the second quarter of 2019 compared with the same period of the previous year. The on-going economic recession is likely to continue until at least the end of this year, and an overall contraction of between (0%) and (1%) is expected for the year as a whole. The result for the second quarter was generally welcomed by analysts as a decrease in the contraction of the economy and as a sign that the economy had passed the lowest point of the economic recession.


TurkStat reported that the first quarter’s gross domestic product (GDP) at current prices was TL 1,024 billion (USD 174.6 billion). On a sectoral basis, the construction sector contracted by 12.7%. the industrial sector contracted by 2.7%, and the services sector, encompassing the trade, transport, housing and food sectors contracted by 0.3%, whilst the agricultural sector increased by 3.4%.


Investment fell by 22.8% in the quarter which reflects the severity of the ongoing economic recession. Domestic demand fell by 1.1% and it is the lack of domestic demand which is deterring new investment. The only areas holding up growth are exports and government expenditure.


The increase in GDP for the third quarter of 2017 was changed from 11.5% to 11.6%, but no indication was given as to the change in overall annual increase which was previously given as 7.4%. The increase/decrease in GDP for the four quarters of 2018 were given as 7.4%, 5.6%, 2.3% and (2.8%). The previously given figures for these four months were 7.4%, 5.3%, 1.8% and (3.0%). There has been no indication as to the change in overall annual increase which was previously given as 2.6%.     The decrease in GDP for the first quarter of 2019 was changed from (2.6%) to (2.4%).


Turkey’s net minimum wage has been raised 26.05% to TL 2,020 (USD 381) as of 01.01.2019       Migration communication helpline 157 available for foreigners in Turkey       Read our homepage articles on developments in the Turkish economy       Turkey’s annual inflation rate drops to 9.26% in September 2019       Turkey’s unemployment rate increases to 14% in August 2019       Read our BUSINESS section for latest sectoral and corporate news       Turkey’s population is 82,003,882 as of 2018 yearend       Number of foreigners visiting Turkey in 2018 increases by 21.8% to 39.5 million       Turkey’s private sector foreign debt is USD 225.8 billion as of 2018 yearend       Turkey’s economy contracted by 2.6% in the first quarter of 2019       Turkey shows surplus of USD 538 million in its 12 month rolling current account balance in June 2019