Turkish Economy Grew by 2.3 Percent in the Second Quarter of 2026
The Turkish economy grew by 2.3 percent in the second quarter of 2026, falling below expectations. While consumer spending drove growth, the construction sector declined.
The Turkish economy grew by 2.3 percent in the second quarter of 2026, performing below market expectations. While citizen consumption served as the main driver of growth, the construction sector recorded a contraction for the first time in 14 quarters due to tightening measures and high interest rates.
Second Quarter Growth Figures
According to data from the Turkish Statistical Institute, the Turkish economy grew by 2.3 percent in the second quarter of 2026, falling short of expectations that ranged between 2.5 percent and 2.9 percent.
Gross domestic product by production method increased by 36 percent at current prices compared to the same quarter of the previous year, reaching 19 trillion 869 billion 747 million liras.
Status of Agriculture and Industry Sectors
Supported by favorable weather conditions, the agriculture sector recorded strong growth of 13.3 percent in the second quarter of the year, making a significant contribution to the economy.
The industrial sector, which had contracted in the first quarter, moved into positive territory by growing 2.4 percent in the second quarter, although the overall loss of momentum persisted.
Contraction in the Construction Sector After 14 Quarters
As earthquake effects subsided and demand contracted due to high interest rates, the construction sector shrank by 1.9 percent in the second quarter of the year.
With this contraction, the construction sector made a negative contribution to the economy for the first time in 14 quarters since the third quarter of 2022.
Services and Other Sectoral Developments
While the trade, transportation, and accommodation sector showed a limited growth of 0.5 percent, the information and communication services sector recorded an increase of 8.6 percent.
The finance and insurance sector supported the economy with a growth rate of 2.1 percent, and public administration, education, and health services with 4 percent.
Impact of Consumption and Domestic Demand
According to calculations made by the expenditure method, almost all of the growth stemmed from consumer spending.
Citizen consumption increased by 3.5 percent in the second quarter, becoming the element providing the highest contribution of 2.33 percentage points to economic growth.
Slowdown in Government Consumption and Investments
Government consumption contracted by 1.8 percent in the second quarter of the year, creating a downward effect on the disinflation process.
While total investments grew by only 0.6 percent, the growth rate of machinery and equipment investments slowed down due to financing difficulties.
Foreign Trade and Export Developments
Due to the negative impacts of the war, exports contracted by 3.4 percent in the second quarter, while imports recorded a decline of 6.4 percent.
As a result of this drop in imports, the contribution of foreign trade to growth turned into positive territory for the first time in six quarters, standing at 0.57 points.
Growth Evaluation by Minister Şimşek
Treasury and Finance Minister Mehmet Şimşek stated in his remarks following the growth data that the fundamentals of the economy are strong.
Şimşek expressed that they expect growth to increase gradually in the upcoming period, accompanied by the disinflation process and supportive global conditions.