Last Updated on 12/09/2022
GDP in Turkey increased in the second quarter of 2022
Despite the downs and fluctuations that the Turkish economy has undergone, the Turkish Statistical Institute has been releasing recently optimist indicators estimating an eventual growth in the country’s economy. In fact, GDP in Turkey increased in the 2nd quarter of 2022.
GDP in Turkey
Turkey’s economy is largely open and has a massive manufacturing and service sector. Electronics, petrochemicals, and automobile manufacturing are important sectors. GDP in Turkey reached 815.27 billion $ in 2021 achieving thus a yearly growth of 11%. Consequently, Turkey ranked the 19th largest economy in the world in 2021.
Based on GDP, the United States, China, Japan, Germany, and the United Kingdom constitute the top five largest economies worldwide.
What is a GDP?
GDP or Gross Domestic Product presents the total monetary or market worth of all the finished goods and services produced within a nation’s boundaries during a certain period of time. It serves as a thorough assessment of one country’s economy as it is a wide indicator of total domestic production.
How GDP is calculated and rated?
Generally, GDP is estimated on a yearly basis. However, like many other countries, GDP in Turkey for instance is calculated quarterly. Governments generally produce an annualized GDP estimate for both the calendar year and each fiscal quarter. Each item of information in this report is given in real terms, which implies that it has been netted for inflation after being adjusted for price changes.
GDP in Turkey increased in the 2nd quarter of 2022
In the second quarter of 2022, GDP in Turkey with chain linked volume index (2009=100) rose by 7.6% compared to the same period the year before. At current exchange rates, GDP climbed to 3 trillion 418 billion 967 million TRY. In the second quarter of 2022, GDP reached 219 billion 335 million dollars in US dollars.
This presents an optimistic indicator that estimates the eventual growth of the Turkish economy. Moreover, we should point out another optimistic indicator released recently. In fact, the Consumer Confidence Index increased by 6% in August 2022.
Insurance and financial activities increased in Quarter II 2022
Insurance and financial activities in Turkey increased by 26.6% in quarter 2 of 2022:
- 1% in services
- 0% in professional, administrative, and support service activities
- 8% in industry, 5.3% in information and communication
- 1% in real estate activities
- 9% in other service activities
- and 1.7% in public administration, education, human health, and social work sectors
However, when examining the activities that make up GDP in Turkey, authorities declared a decline of 10.9% in construction and 2.9%, in agriculture, forestry, and fishing.
Consumption expenditure increased as well
In the second quarter of 2022, as measured by the chained linked volume index, resident households’ final consumption expenditure climbed by 22.5% in the GDP in Turkey. Meanwhile, government final consumption increased by 2.3%, and gross fixed capital formation increased by 4.7%.
Moreover, exports of goods and services increased by 16.4% in the second quarter of 2022 compared to the same quarter the year prior, while imports of goods and services rose by 5.8%.
Employees’ compensation increased by 66.4% in Quarter II 2022
Likewise, in the second quarter of 2022 compared to the same quarter the previous year, employee compensation climbed by 66.4%, and net operating surplus/mixed income increased by 134.7%, respectively.
Employee remuneration made up 25.4% of Gross Value Added at current prices in the second quarter of 2022 compared to 32.6% the year before. In contrast to the same quarter last year, when it was 49.2%, the share of net operating surplus/mixed income was 54.0%.
Expectations of GDP in Turkey
Having won a spot in the Club of Twenty, a group made up of the twenty most significant economies in the world, Turkey is acknowledged as an emerging market and one of the world’s newly industrialized nations. A portion of Turkey’s economic importance can be attributed to its growth, particularly during the most recent financial recession. GDP in Turkey achieved a relatively high percentage of growth each year while other countries struggled to thrive, or just keep a balanced economy. Additionally, there were remarkable advancements in Turkey’s financial sector, most notably with the nation’s inflation.
All these facts contribute to predicting an optimistic future for the Turkish economy. In fact, analysts and global economy experts anticipate the GDP in Turkey to be $690.00 billion by the end of 2022. Moreover, they predict that Turkey’s GDP will have a long-term trend of roughly 750.00 USD billion in 2023 and 850.00 USD billion in 2024. All these optimistic estimations may comfort those who still wonder if it is a good time to invest in Turkey.
For more details about economic trends in Turkey don’t hesitate to contact us. You can quickly get a risk-free initial consultation. Moreover, if you consider investing in Turkey, our qualified team provides you with a full-service advisory and recommend solid and safe transaction according to the market situation. Check our services.
