Turkey's economy is growing by 5 percent in the first quarter of 2017

Turkey's economy is growing by 5 percent in the first quarter of 2017
Posted on: 13 Jun 2017

Reforms to accelerate further growth

According to the data released by the Turkish Statistical Institute (TURKSTAT), the growth rate of gross domestic product (GDP) was 5 percent in the first quarter of 2017 compared to the same period of the previous year.

Country's growth estimate was four percent. According to TURKSTAT, a recovery in domestic demand and exports played an important role in accelerating economic growth.

Government officials mentioned greater growth would be seen through the realisation of reforms and praised high economic growth than expectations.

According to TURKSTAT data, gross domestic product adjusted for the calendar month was 4.7 percent and seasonally adjusted and calendar adjusted gross domestic product increased by 1.4 percent compared to the previous quarter.

Exports of goods and services rose by 10.6 percent, while imports of goods and services rose by 0.8 percent in the first quarter of 2017.

Some experts comment that this seems, in part, to be a result of “the weakness of Lira” which is a support for exports of goods. While the Turkish Lira lost more than 20 percent against the dollar over the past year it has risen slightly over the last few months. However, imports rose only by 0.8 percent.

Deputy Prime Minister Mehmet Simsek stated that the economy would see more growth through reforms and said that 2.8 percentage points of the 5 percent growth has been net exports with an increase of 2.2 percentage points from domestic demand.

He said in an interview NTV television after release of concerned data "The growth in Turkish economy will be stronger in the second quarter as compared to the first.

President Erdogan has also reiterated in his press conference today about the strength of the Turkish Economy in the first quarter of the year and mentioned that Turkey’s growth rate is double the growth rate of EU. President Erdogan furthermore added about the increase in foreign investments in this part of the year is an excellent boost to Turkish economy also.