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Turkish economy grew 1.8% in 2020 despite the pandemic

Turkey’s GDP grew 5.9% in 4th quarter. Together with China, Turkey is the only G20 member country with positive economic growth in 2020.

Turkish economy managed to grow at 1.8% during the past year 2020 despite the economic slowdown and the global recession caused by the coronavirus pandemic, with Turkey being the only G-20 country along with China that experienced positive growth in its GDP last year, according to the latest data.

The report published today by the Turkish Statistical Institute (TÜİK) indicates that the economy of the Eurasian country expanded to 1.8% in 2020, reaching the Gross Domestic Product (GDP) of Turkey the 5.1 trillion Turkish liras (595,5 billion euros) in updated prices.

Likewise, GDP growth in the fourth quarter of the year reached 5.9%, according to TÜİK, after having grown to 6.3% in the third quarter (according to the latest update) and suffering a 10.3% drop in the second trimester because of the pandemic.

In the first quarter of 2020, the Turkish economy had grown by 4.5%, being one of the fastest growing economies in the world. On the other hand, the Turkish currency remained last year at an average exchange rate of about 7 Turkish liras for every US dollar.

Turkey and China, only G-20 countries that grew in 2020

A group of 21 economy experts consulted by the Turkish news agency Anatolia had predicted that Turkey’s GDP would grow by 2.2% in 2020, with an estimate of between 5 and 8.3% – 7% on average – growth in the fourth quarter of the year. A similar poll by Reuters economists had predicted a 2.3% for 2020 and 7.1% in Q4.

Although the results of the Turkish economy in 2020 are below the most recent forecasts of economists, the data exceed the expectations of the Turkish government, which in its last Economic Program announced last September had announced an increase of GDP for 2020 of just 0.3%. Turkey is in fact, together with China, the only member country of the G-20 that experienced positive economic growth in 2020, a year marked by recession due to the global coronavirus pandemic.