Turkey's Economy: Balanced Growth in Q3 2024

Turkey's economy showed moderate but stable growth in the third quarter of 2024, recording a 2.1% year-on-year increase in gross domestic product (GDP). This figure was the result of a balanced economic policy aimed at disinflation, as confirmed by data released by the Turkish Statistical Institute (TÜİK).

Finance and Treasury Minister Mehmet Simsek commented on the growth results, noting that “moderate and balanced growth in a disinflationary environment is in line with our forecasts.” He expressed confidence that economic activity will develop strongly in the second half of next year, thanks to improved predictability in reducing inflation, the restoration of trade ties and favorable conditions in global financial markets.

Turkey’s economic growth was driven by several key sectors:

1. Construction: This sector showed the highest growth, increasing by 9.2%. This reflects a recovery in construction activity and increased investment in infrastructure.

2. Finance and Insurance: The finance sector also showed positive dynamics, increasing by 6.2%. This can be attributed to increased confidence in financial institutions and improved lending conditions.

3. Agriculture, Forestry and Fisheries: This sector grew by 4.6%, highlighting the importance of the agricultural sector for the country’s economy.

4. Real Estate: The real estate sector showed a growth of 2.5%, which can be attributed to an increase in demand for housing and commercial real estate.

However, not all sectors of the economy showed positive results. For example, the industrial sector and other services showed negative figures, falling by 2.2% and 2.4% respectively. This may be due to global economic challenges and changes in demand for products and services.

Foreign Trade as an Engine of Growth

Trade Minister Ömer Bolat noted that the country's economy has shown positive dynamics over the past four years, showing growth for 17 consecutive quarters. He emphasized that the contribution of net exports of goods and services to the overall economic growth was 2.2 percentage points. This shows that foreign trade remains a key factor contributing to Turkey's economic development.

Economic experts and government officials are optimistic about Turkey's future economic growth. The country's economy is expected to show more dynamic development next year as the global economic situation improves and trading partners recover. An important aspect will be the continuation of disinflation policies and the stabilization of financial conditions.

Thus, the Turkish economy showed balanced growth in the third quarter of 2024, which is a positive sign for the future development of the country. The sustainability of key sectors and the active participation of foreign trade create the basis for further progress and improvement of the living standards of the population.