Despite the August 2018 attacks on foreign currencies, Turkish economy has managed to keep a steady growth. Even though the total cost of the manipulations has reached USD 70 billion for the country, analysts believe a trend of recovery will commence in the second half of 2018. We have compiled a 6-point list describing how Turkey’s economy had weathered the year 2018.
- After adopting a presidential system of governance, Turkey has been subjected to a number of attacks over foreign currencies, yet managed to keep a pattern of economic growth. The economy grew by 2.6% in terms of GDP in 2018, despite shrinking by 3% in the last quarter of the year.
- Turkey’s real gross domestic product amounted to 3.7 trillion and 784 billion in TRY and USD respectively, while GDP per capita was calculated as USD 9 thousand 632. Turkey was the 6th fastest growing G20 country in 2018.
- As a result of the new economic program announced last September, a successful period of balancing was reflected on growth figures as well. With this new program, Turkey is steering away from consumption and into an export-oriented growth, and the country has recorded significant achievements in the second half of the year.
- The record-breaking export figures of the previous year rose by 10% in Q4, contributing 2.5 points to economic growth. Taking import figures into consideration, the total contribution by foreign demand was 9.7.
- In parallel with the continuing period of economic balancing, the current account deficit keeps falling. Turkey’s annual deficit improved to reach its lowest figures in 9 years, posting USD 21 billion 592 million in January. Year-on-year, Turkish current account balance fell USD 6 billion 221 million, reporting USD 813 million. Resultantly, the deficit posted its 105-month lowest.
- On a year-on-year basis, the total value added of the industrial sector rose by 1.1%, as the consumer price index increased by 0.65 percent. The government final consumption expenditure rose by 3.6 percent. On added total value, public administration, education, healthcare, and services industries brought the greater numbers. The public sector grew by 8.5%, contributing 0.92 points, while services industry added 1.24 points to the figures in 2018.