Minister Şimşek Evaluates Second-Quarter Growth and Economic Balance

Treasury and Finance Minister Mehmet Şimşek evaluated the second-quarter growth figures. Drawing attention to the strong performance of technology-intensive sectors and agriculture, Şimşek stated that the economy is proceeding on a balanced path supported by domestic and external demand.

Sectoral Growth Performance

With the contribution of technology-intensive sectors, industrial value-added increased by 2.4 percent annually.

The agricultural sector continued to maintain its strong growth performance of 13.3 percent.

Expenditure and External Demand

Private consumption expenditures recorded a growth of 3.5 percent in the second quarter.

While investments grew by 0.6 percent, net external demand also made a positive contribution to growth.

Current Account Deficit and Sustainability

Despite geopolitical developments and increases in commodity prices, the annualized current account deficit stood at $38.9 billion.

The ratio of the current account deficit to national income remained at 2.3 percent, keeping it at sustainable levels.

Fiscal Discipline and Budget

Significant fiscal space was created thanks to the fight against informal economy and expenditure discipline.

Despite foregoing tax revenues through the sliding scale fuel pricing application, budget performance maintained its positive trend.

Debt Stock Indicators

The ratio of gross external debt stock to national income followed a horizontal course at 31.6 percent.

Turkey's ratio of total debt to national income remained below the world and developing countries averages.

Future Targets

Strengthened macroeconomic fundamentals increased the economy's resilience against external shocks.

The Medium-Term Program will provide a roadmap for price stability and permanent prosperity increase in the new period.