The Turkish economy reported its strongest annual growth since 2013. The Turkish Gross Domestic Product (GDP) grew by 7.4% in 2017, according to official statistics. The expectations in the financial markets were slightly modest growth of 7.2%. This has been the most serious economic expansion in four years (since 2013). In 2016, the increase was only 3.2%. The good result is due to a solid upturn in both Turkish industry, services and construction.
On a seasonally-adjusted basis, the economy expanded by 1.8% in the three months to December, following a revised 1.3% rise in the previous period.
The biggest contribution for the growth is the demand from abroad. The government’s expectations are that in 2018 the economy will grow stronger than the official forecast of 5.5%.
The Turkish lira responded positively to today’s economic data, rising against the US dollar and the Euro. The US dollar dropped to 3.9877 TRY, falling from its record high of about 4.0375 TRY at the end of the previous week. The Euro fell to a three-day low of 4.9175 TRY.
Better than expected data is likely to be welcomed by President Recep Tayyip Erdogan, particularly against the background of the presidential and parliamentary elections in the country in 2019.