Türkiye’s economy expanded by a solid 3.2% in 2024, according to data released Friday by the Turkish Statistical Institute (TurkStat).

The Gross Domestic Product (GDP), calculated using the chain-linked volume index (2009=100) across four quarters, showcased robust growth compared to the previous year, with the construction sector leading the charge at a 9.3% increase.

At current prices, GDP surged by 63.5% to reach 43 trillion 410 billion 514 million Turkish lira (TRY), equivalent to approximately $1.3 trillion USD. Per capita GDP stood at 507,615 TRY, or $15,463 USD, highlighting a notable rise in nominal terms. In the fourth quarter alone, GDP grew by 3.0% year-on-year, reaching 12 trillion 704 billion 50 million TRY ($369.37 billion USD), a 49.0% increase at current prices.

The construction sector’s standout performance was complemented by strong growth in taxes less subsidies on products (7.7%), financial and insurance activities (4.9%), agriculture (3.9%), and information and communication (3.4%). Services rose by 3.1%, while real estate activities grew by 2.4%. More modest gains were recorded in public administration, education, and health (1.8%), professional and administrative services (1.4%), other services (1.2%), and industry (0.5%). Seasonally and calendar-adjusted GDP in Q4 increased by 1.7% from the prior quarter, with a calendar-adjusted annual rise of 3.1%.

Household consumption, a key economic driver, climbed by 3.7% for the year, accounting for 59.2% of GDP at current prices. In the fourth quarter, household spending rose by 3.9%, bolstered by a 1.6% increase in government consumption and a 6.1% jump in gross fixed capital formation. Trade dynamics shifted as exports of goods and services edged up by 0.9% annually but dipped by 2.0% in Q4, while imports fell by 4.1% for the year yet rose by 1.6% in the final quarter.

Labor income saw a dramatic uptick, with compensation of employees soaring by 90.0% in 2024 and 75.4% in Q4, reflecting wage growth amid inflationary pressures. This boosted its share in Gross Value Added to 37.9%, up from 32.5% in 2023. Meanwhile, net operating surplus/mixed income grew by 46.5% annually and 35.9% in Q4, though its share in Gross Value Added slipped to 42.2% from 47.0% the previous year.

Analysts attribute the year’s growth to sustained domestic demand and strategic investments, particularly in construction, despite challenges like a narrowing trade surplus. As Türkiye closes out 2024 with a GDP growth rate of 3.2%, the figures signal cautious optimism for an economy navigating both opportunity and headwinds, with the fourth quarter’s 3.0% rise reinforcing a steady trajectory into 2025. (ILKHA)