The clear view of Turkey’s economy in 2018 emerged with the October-November-December 2018 data announced by Turkish Statistical Institute (TÜİK). Accordingly, the Turkish economy grew by 2.6% in the last year, but the economy shrank by 3% in the last quarter of the year. These figures show that half of the 5.5% targeted annual growth in the Medium Term Program has been achieved.
GDP (Gross domestic product) in current prices increased by 19.1% to 3 trillion 700 billion 989 million TL compared to the previous year according to the production method in 2018. National income per capita is 45,463 TL, i.e. 9,632 Dollars. This figure was calculated as 10 thousand 597 dollars in 2017. Household consumption remained at a low growth rate of 1.1% in the year as a result of a serious shrinkage of 8.9% in the last quarter of the year.
When we take a closer look at the activities that make up the National Income, it is seen that the agricultural sector increased by 1.3% and the industrial sector by 1.1%, whereas the construction sector decreased by 1.9%. The increase in the value added of the services sector was observed to be 5.6%.
Turkish economy shrunk by 3% in the 4th quarter
GDP declined by 3% in the last quarter of 2018 (October-November-December). In the last quarter, the activities of the sectors contributing to the national income have been declining; the agricultural sector decreased by 0.5%, the industrial sector by 6.4% and the construction sector by 8.7%. Services sector decreased by 0.3% as well. The calendar adjusted GDP chained volume index decreased by 3.2% in the fourth quarter of 2018 compared to the same period of the previous year. In the last quarter of the year, investments also declined by 12.9%. Public expenditures increased by 0.5% in the last quarter of the year and by 3% during the year.
In the last quarter, exports increased by 10% and imports decreased by 24%. Growth in both public spending and foreign trade balance seems to have stabilized the shrinkage in the last quarter to some extent.
‘The slowdown in growth is temporary’
Treasury and Finance Minister Berat Albayrak made a statement after the announcement of the official figures, saying the economy has entered a rapid recovery trend and the economic slowdown is temporary. Albayrak said; “Growth in the last quarter of 2018 was realized as -3% in line with market expectations. In this period, where we provided internal and external balancing; we initiated a decline in the current account deficit and inflation. The worst has been left behind in economic activity. The worst expectations in growth have not been realized”. Albayrak stated that exports and tourism will be the main items that feed the growth in 2019.