Turkey's Second Quarter 2026 Growth Data Announced for the Economy

The Turkish economy grew by 2.3 percent in the second quarter of 2026 compared to the same period of the previous year, and by 1.1 percent compared to the previous quarter. Although there was no technical contraction and the period of uninterrupted growth reached 24 quarters, the announced annual rate fell behind market expectations.

Annual and Quarterly Growth Rates

The Turkish economy grew by 2.3 percent annually and 1.1 percent on a quarterly basis in the second quarter of 2026. With this result, while the economy did not technically contract, annual growth remained below the market expectation of around 2.8 percent.

Historical Comparison and Slowdown

The 2.3 percent growth rate was recorded as one of Turkey's weakest positive growth rates of the last fifteen years when compared to periods excluding global crises and pandemics. Experts stated that this situation indicates the slowdown must be taken seriously.

Foreign Trade and Net Export Contribution

Treasury and Finance Minister Mehmet Şimşek argued that balanced growth took place in the second quarter, stating that net exports contributed approximately 0.6 percentage points to growth. However, it was emphasized that this positive contribution stemmed not from an increase in exports, but from imports declining faster than exports.

Household Consumption and Investments

While household consumption increased by 3.5 percent annually to provide the largest contribution to growth, the increase in investments remained at only 0.6 percent. Conversely, according to seasonally adjusted data, household consumption contracted by 1.3 percent compared to the previous quarter.

Sectoral Distribution and Agricultural Sector

On a sectoral basis, the highest growth occurred in agriculture at 13.3 percent, while the information and communication sector grew by 8.6 percent. It was noted that this increase in the agricultural sector is important for food supply but remains vulnerable to seasonal effects.

Industry, Construction and Services Sectors

While the industrial sector grew by 2.4 percent, industrial employment decreased by 2.2 percent annually. The construction sector contracted by 1.9 percent, and the growth in broad service areas such as trade, transportation, and accommodation remaining limited to 0.5 percent laid bare the widespread slowdown in the economy.