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Turkish economy grew by 4.5 percent in 2023. ๐น๐ท๐ฏ
In the ever-changing landscape of 2023, Turkey's economy showcased commendable resilience with a 4.5% growth, defying expectations amid tightening monetary policies. Let's delve into key insights and sectoral nuances that shaped this economic journey.
In 2023, Turkey's economy demonstrated resilience with a 4.5% growth, slightly lower than previous years but still impressive. Comparative figures reveal a robust 5.6% growth in 2022 and an impressive 11.5% surge in 2021, marking a significant recovery from the pandemic-hit 1.9% growth in 2020.
The per capita GDP soared to a historic peak of 307,952 TL (13,110 USD), marking a milestone in dollar-denominated per capita income. The entire economy crossed the 1 trillion-dollar mark, reaching 1.12 trillion dollars in 2023, according to TรฤฐK data.
Domestic consumption played a pivotal role, witnessing a 12.8% increase in household final consumption expenditures. Investments grew by 8.9%, while the construction sector stood out with a noteworthy 7.8% growth, fueled by post-earthquake reconstruction activities.
Agriculture faced a marginal contraction of 0.2%, highlighting challenges in livestock and weak demand for seeds and fertilizers. The industrial sector grew modestly by 0.8%, marking its lowest growth since 2019, while the construction sector thrived at 7.8%.
In late 2023, the Central Bank raised the policy interest rate dramatically from 8.5% to 42.5%, addressing inflation and currency concerns pre-election. Despite initial worries, the final quarter saw a 4% annual growth, fostering optimism for the future.
The 0.2% agricultural sector contraction raises worries, with experts warning of potential food supply issues and increased foreign dependence. Despite a record per capita income and GDP surpassing $1 trillion, concerns persist about food prices and challenges from the agricultural downturn.
