The Turkish economy grew 7.4% in 2017, making it the fastest growing of all G20 economies, according to data released by the Turkish Statistical Institute (TurkStat). In comparison, the UK’s GDP growth rate for 2017 sat at 1.7%.
This rate of growth is more than double the 3.6% growth achieved in 2016, while also surpassing analyst predictions of 7%, and far exceeding the 5.5% target for 2017 in the Turkish government’s medium-term program. This further highlights Turkey’s economy as stable, robust and absolutely booming following rapid and positive acceleration in growth to overcome the instability caused by the geopolitical turmoil.
According to the TurkStat statistics, when the activities which constitute GDP were analyzed, the value added by Turkey’s core sectors increased by (compared to the previous year):
4.7% in the agricultural sector
• 9.2% in the industrial sector
• 8.9% in the construction sector
• 10.7% in the services sector (wholesale and retail trade, transport, storage, accommodation and food service activities)
The reasons for this growth can be primarily attributed to increased government expenditure on investment and infrastructure projects, a robust domestic demand (Turkey experienced a 6.1% increase in final consumption expenditures of households in 2017), and a significant boom in foreign trade deals – with Turkish exports increasing by 10.6% year on year in 2017.
Mehmet Büyükekşi, chairman of the Turkish Exporters Assembly (TIM) underlines the confidence he’s had in the Turkish economy for the last 12 months, and the crucial role of Turkish exporters in this growth.
“At the beginning of 2017, we suggested that Turkey had overcome the political and economic troubles of 2016, and that 2017 would be a “Year of Breakthrough” for the economy. This latest news proves our predictions entirely accurate, and the role of foreign trade and Turkish exports in this success can’t be underestimated, with a 10.2% increase in exports in 2017 accounting for 0.15 points of the 7.4% growth rate.
“With our 71 thousand exporters providing Turkish products and services to 237 countries and regions, and Turkey's share in world exports reaching 0.89%, it’s safe to say Turkey is becoming a major player in the international arena despite the geopolitical turmoil in the surrounding region. We believe that, with the efforts of our exporters and the support of our Government, our future growth figures will also display a similar performance. 2018 will be a year of records in export figures and our economy will continue to perform above the world average, as it did in 2017.”