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Turkish economy grew at 21.7% in the second quarter

Turkey is the 2nd OECD country whose economy grew the most, behind the UK. It is the largest increase in Turkish GDP since 1999.

Turkish economy grew spectacularly at 21.7% during the second quarter of 2021, breaking growth records after the fall caused by restrictions due to the coronavirus pandemic, according to the latest official data published today by the Turkish Statistical Institute (TÜİK). This is the largest GDP increase in Turkey since 1999.

After a GDP growth of 7.2% during the first quarter of 2021 (after a revision of the previous figure of 7%), the strong restrictions and the strict confinement imposed in Turkey between April and May due to the increase in COVID-19 cases, raised fears of a recession. However, the data reflects that the manufacturing industry and the macroeconomy were not affected by these measures, which were completely lifted in early June.

Thus, economic growth during the second quarter was led by services, which grew 45.8% year-on-year; they were followed by industry (which grew 40.5%) and the information and communication sector (25.3%). Household consumption – which represents about 2/3 of the Turkish economy – expanded to 22.9%. The lowest growth was recorded in the real estate sector (3.7%), construction (3.1%) and agriculture (2.3%).

With these data, the value of the Turkish economy grew between April and June to reach 645 billion euros in updated prices, while exports increased by 59.9% and imports by 19.2% in relation to the same period of 2020, a year in which the economy grew by 1.8%, weighed down by the pandemic despite a 10.4% rebound also in the second quarter. Still, Turkey was one of the few G20 countries along with China that did not experience a recession in 2020.

Turkey, 2nd country in the OECD that grew the most, after the UK

Regarding the data for the second quarter of 2021, Turkey ranks second in terms of economic growth among OECD countries, surpassed only by the United Kingdom (whose GDP grew by 22.2%), and just ahead of Spain, which ranks third with a growth of 19.8% between April and June of this year, after having suffered a contraction of 21.6% in 2020.

Mexico grew by 19.5% and was followed by France with an increase in GDP of 18.7%. On average, GDP in the Eurozone grew to 13.6% in the second quarter, and that of the OECD to 13%, although it still remains below pre-pandemic levels.

Referring to the growth data of the Turkish economy in the second quarter, the Minister of Treasury and Finance Lütfi Elvan highlighted the importance of containing the rise in prices: “For a sustainable and complete growth, low inflation, stability in change rates and predictability, are critically important. We are trying to get it,” Elvan said.