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Turkish economy grew by 7.4% in the third quarter of 2021

Turkey’s economy continues to be one of the fastest growing of the G-20, with GDP driven by domestic consumption and exports.

Turkish economy grew by 7.4% during the third quarter of 2021, according to official data published today by the Turkish Statistical Institute (TÜİK), which confirms a growth in Turkey’s GDP in line with economists’ forecasts, supported by a strong domestic demand, manufacturing industry and exports.

The TÜİK report indicates that the Gross Domestic Product (GDP) of the Eurasian country expanded by 7.4% in relation to the third quarter of 2020, and by 2.7% in updated prices compared to the second quarter of 2021, in which the Turkish economy grew by 21.7% (22% after a new revision of the data). The size of Turkey’s annual GDP thus grew to reach $ 795.2 billion in the third quarter, compared to $ 765 billion in the previous quarter.

In this way, the Turkish economy surpassed most G-20 countries in growth in the third quarter, boosted by the strong weight of domestic consumption in households, which is estimated to represent about 2/3 of the economy: despite the pandemic, it grew 9.1% year-on-year in the third quarter.

Exports also had an important weight, with a year-on-year growth of 25.6%, while imports fell 8.3% and Gross Fixed Capital Formation (GFCF) decreased 2.4% in the last year. At the same time, public spending by the State increased compared to the third quarter of 2020 by 9.6%.

Commenting on the latest data on the growth of the Turkish economy in the third quarter, Turkish Trade Minister Mehmet Muş highlighted the contribution to the growth of net exports, which was 6.8%: “Exports will continue to be the driving force of our growth,” he said. For his part, the Minister of Treasury and Finance, Lütfi Elvan, underlined the “significant contribution of external demand” to the increase in Turkish GDP.