Türkiye's economy expanded 7.6% annually in the second quarter of the year, official data showed Wednesday, as it kept up the strong performance and delivered a better performance than in the first three months after rebounding strongly from the coronavirus pandemic.
The economy grew 7.3% year-over-year in the first quarter, driven by strong performances, exports and robust domestic demand.
Surveys expected gross domestic product (GDP) to have expanded around 7.5% in the second quarter from a year ago. Yet, the economic activity is seen cooling off in the second half of the year, reflecting weaker demand conditions.
The government’s new economic program has prioritized production, growth and exports with a low-interest rates policy, aiming to achieve a current account surplus that is said to eventually steady the Turkish lira and cool inflation.
While the rate cuts aimed at stimulating the economy, analysts predict that activity could cool in the second half of the year due to a downward trend in demand and an expected economic slowdown in Türkiye’s largest trade partners.
Türkiye’s central bank cited signs of a slowdown in the third quarter earlier this month when it surprised markets by cutting its policy rate by 100 basis points, saying it needed to keep driving economic growth.
“It is important that financial conditions remain supportive to preserve the growth momentum in industrial production and the positive trend in employment,” the bank said.
Treasury and Finance Minister Nureddin Nebati last week said that he expects growth in the second quarter to come in higher than the 7.3% recorded in the first quarter.
Turkey’s economy was one of few to narrowly expand in 2020. It bounced back in 2021, expanding 11%, Daily Sabah reports.
