Türkiye’s Gross Domestic Product (GDP) grew by 2.0% in the first quarter of 2025 compared to the same period last year, according to data released on Friday by the Turkish Statistical Institute (TurkStat).

The GDP with chain-linked volume index rose 2.0% year-on-year, driven largely by strong growth in the construction sector, which expanded by 7.3%. Other notable contributors included information and communication (6.1%), other service activities (4.7%), and professional, administrative and support services (4.0%).

The economy also recorded growth in real estate activities (2.4%), taxes less subsidies on products (1.8%), services (1.3%), financial and insurance activities (0.5%), and public administration, education, health, and social work activities (0.3%).

However, the agriculture, forestry and fishing sector contracted by 2.0%, and the industry sector declined by 1.8%, reflecting ongoing challenges in these areas.

On a quarterly basis, seasonally and calendar-adjusted GDP increased by 1.0%, while the calendar-adjusted GDP was up 2.7% year-on-year.

At current prices, Türkiye’s GDP reached 12.13 trillion Turkish Lira (TRY), marking a 36.7% increase from the same quarter in 2024. In U.S. dollar terms, GDP amounted to approximately $335.5 billion in Q1 2025.

Final consumption expenditure by resident households rose 2.0%, while government spending increased 1.2%, and gross fixed capital formation climbed 2.1% during the same period.

Exports of goods and services slightly declined by 0.01%, whereas imports saw a significant increase of 3.0%, indicating stronger domestic demand despite external trade challenges.

In terms of labor income, compensation of employees surged by 42.9%, and net operating surplus/mixed income rose 31.2% compared to Q1 2024.

The share of employee compensation in Gross Value Added increased to 43.7%, up from 41.7% a year earlier, while the share of net operating surplus/mixed income decreased slightly to 35.0%, from 36.4% in the same quarter of 2024. (ILKHA)