Turkish economy grows in the second quarter while construction sector contracts

The Turkish economy grew by 2.3 percent in the second quarter of the year, while the construction sector contracted by 1.9 percent. In Ankara, the industrial and information-communication sectors recorded growth, while a cautious period was entered regarding new projects.

Second quarter economic growth data

It was announced that the Turkish economy grew by 2.3 percent in the second quarter of the year. During this period, information and communication activities grew by 8.6 percent, the industrial sector by 2.4 percent, and real estate activities by 2.1 percent.

Agriculture and fixed capital investments

The agriculture, forestry, and fishing sector recorded a growth of 13.3 percent. Fixed capital investments, on the other hand, declined to the level of 0.6 percent in the second quarter, following the 3 percent growth in the first quarter.

Ankara industry and technology sector

In Ankara, a growth of 2.4 percent was recorded in the industrial area, which is heavily concentrated with defense industry, machinery, electronics, medical production, and high-tech manufacturing. The 8.6 percent increase in information and communication activities also created a strong field for technoparks and software companies.

Contraction in the construction sector and its causes

Despite a 2.1 percent growth in real estate activities, the construction sector shrank by 1.9 percent. In Ankara, land costs, construction material and labor prices, as well as difficulties in accessing financing, are affecting new project decisions.

Market expectations and the future period

In the autumn period, interest rates, housing loan conditions, new project launches, and construction costs will determine the direction of the Ankara real estate market. The slowdown in supply may bring the value of existing residences to the forefront.