After registering economic growth of 11% in 2021, its highest level in a decade, Turkey maintains stable and strong growth by registering 7.3% growth in Q1 2022. Economic expansion has been driven by the rise particularly impressive of household consumption (+19.5%) as well as the increase in exports (+16.8%). The banking sector also contributed to growth, growing by 24.2%, while information and communication services grew by 16.8%.
The other sectors which recorded the strongest growth rate are:
- Tertiary: 14.9%
- Industry: 7.4%
- Real estate: 5.4%
- Public administration, education, health and social services: 5.2%
The agriculture sector grew by only 0.9%, as for the construction sector, an economic regression of 7.2% was recorded.
Growth estimates for the year 2022, initially high, have been revised downwards due to the war in Ukraine which is impacting energy prices, the current account and the outlook for inflation. In view of the marked recovery in Q1 2022, several organizations have improved growth estimates for Turkey: Fitch has revised up its forecast from 2.4% to 4.5% for 2022. The OECD has also revised to rising its forecast from 3.3% to 3.7%.
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