NEWS ECONOMY NEWS        31/05/2021

Turkey’s economy grows 7% in the first quarter of 2021

According to figures prepared by the Turkish Statistical Institute (TÜİK – TurkStat), Turkey’s gross domestic product (GDP) grew by 7% in the first quarter of 2021 compared with the same period of the previous year. The first quarter’s gross domestic product (GDP) for 2021 using the production calculation method at current prices was reported as TL 1,386 billion (USD 188 billion), which is a 29.1% increase on the TL 1,074 billion (USD 177 billion) figure for the same period of the previous year based on the Turkish lira figures. The 7% growth represents in US dollars the percentage increase in the seasonally and calendar adjusted GDP figure prepared using the chain-linked volume index.

 

The 7% growth for the first quarter of 2021 reflects the normalisation and recuperation of the economy since the contraction of 10.3% in the second quarter of 2020 due to the start of the Covid-19 pandemic. This performance compares astonishingly well with other both emerging and developed markets, which are still struggling to throw off the shackles of the pandemic. The breakdown of the first quarter of 2021 showed a 7.4% increase in household consumption, a 1.3% increase in government expenditure, a 11.4% increase in investment, a 3.3% increase in goods and services exports, and a 1.1% decrease in goods and services imports.

 

Turkey’s overall growth rate calculated for the year 2020 was 1.8% with a total gross domestic product (GDP) for 2020 using the production calculation method at current prices as TL 5,048 billion (USD 717 billion). The 2020 GDP figure was 16.8% higher than that of 2019. GDP income per head of population was given as TL 60,537 (USD 8,599), compared with TL 52,316 (USD 9,213) in 2019. The quarterly growth rates for 2020 remain the same as 4.5% for the first quarter, (10.3%) for the second quarter, 6.3% for the third quarter, and 5.9% for the fourth quarter.

 

On a sectoral basis, the growth rates for the total year 2020 were recorded as follows: financial and insurance services 21.4%; information and communication 13.7%; agriculture 4.8%; public administration, education, health and social services 2.8%; property 2.6%; %; other services 2.5%; and industry 2%. On the other hand, there was a contraction in professional, administrative and support services of 5.2%; services (wholesale and retail trade, transport, storage, accommodation and food service activities) 4.3%; and construction sector 3.5%.

 

The overall growth rate calculated for the year 2019 remains recorded as 0.9% with the quarterly growth rates revised as follows: (2.6%) for the first quarter, (1.7%) for the second quarter, 1% for the third quarter, and 6.4% for the fourth quarter. The GDP for 2019 remains as TL 4,320 billion (USD 761 billion), a 15% increase on the previous year using current prices. GDP income per head of population was given as TL 52,316 (USD 9,213), compared with TL 46,167 (USD 9,792) in 2018.



Turkey’s net minimum wage has been raised 21.56% to TL 2,825.90 (USD 380) as of 01.01.2021       Migration communication helpline 157 available for foreigners in Turkey       Read our homepage articles on developments in the Turkish economy       Turkey’s official annual inflation rate increases to 17.53% in June 2021       Turkey’s official unemployment rate decreases to 13.2% in May 2021       Read our BUSINESS section for latest sectoral and corporate news       Turkey’s population is 83,614,362 as of 2020 yearend       Foreigners visiting Turkey in 2020 falls by 71.7% to 12.7 million       Turkey’s private sector foreign debt is USD 173.9 billion as of 2020 yearend       Turkey’s economy grew by 1.8% in 2020       Foreign Direct Investment inflow to Turkey was USD 7.7 billion in 2020