Turkey’s economy powered ahead in the third quarter, with gross domestic product 11.1 per cent higher than in the same period in 2016, exceeding analysts’ expectations.
The pace of growth reported by the government statistics office on Monday was up from an average of 5 per cent during the previous three quarters.
The country is on track to deliver GDP growth of as much as 7 per cent for the whole of 2017, about twice the amount expected earlier in the year.
“This is a robust recovery from the difficult year of 2016 and shows the resilience of the Turkish economy,” said Hatice Karahan, chief economic adviser to President Recep Tayyip Erdogan. “This is the second time since the global financial crisis that Turkey has demonstrated its resilience,” she told the Financial Times.
Growth in the third quarter was especially strong in annual terms because of the comparison with the third quarter of 2016, when the economy contracted by 0.8 per cent in the aftermath of a failed coup attempt in July 2016.
Nevertheless, the average pace for the past 12 months has risen to 6.5 per cent, driven primarily by household consumption and by a revival in investment. “Investment is coming back, that is the best news from this period,” said Ms Karahan. She said investment contributed 3.6 percentage points to growth on the demand side, while household consumption contributed 7 points.
Exports also grew strongly but so did imports, with the result that the net contribution of exports to growth was minimal, she said.
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