Türkiye's Gross Domestic Product (GDP) has experienced a notable surge of 3.8% in the second quarter of 2023, according to an announcement made by the country's official statistical agency on Thursday.

The GDP, measured by the chain-linked volume index (2009=100), exhibited a substantial growth of 3.8% in comparison to the corresponding quarter of the previous year. Among the noteworthy sectors, other service activities witnessed a remarkable upswing of 6.6% during the same period.

A detailed analysis of the constituents of the GDP revealed impressive progress across various sectors. Value added in other service activities, services, construction, public administration, education, human health and social work activities, financial and insurance, real estate activities, information and communication, and agriculture, forestry, and fishing experienced growth rates of 6.6%, 6.4%, 6.2%, 5.1%, 4.9%, 3.2%, 1.3%, and 1.2% respectively. However, professional, administrative and support service activities and the industrial sector encountered declines of 1.2% and 2.6%, respectively.

After adjusting for seasonal and calendar variations, the GDP, measured by the chain-linked volume index (2009=100), escalated by 3.5% compared to the previous quarter. Moreover, the calendar-adjusted GDP with the same index surged by 5.0% in relation to the corresponding quarter of the preceding year during the second quarter of 2023.

The GDP reached a substantial value of 5 trillion 502 billion 192 million Turkish Lira (TRY) at current prices in the second quarter of 2023. This translated to a significant 60.7% increase. In terms of US Dollars, the GDP stood at 271 billion 468 million for the same period.

Domestic consumption showed a positive trend, with final consumption expenditure of resident households posting a notable growth of 15.6%. Government final consumption expenditure and gross fixed capital formation also demonstrated increases of 5.3% and 5.1%, respectively, when compared to the same quarter of the previous year.

However, trade dynamics witnessed a mixed performance. While imports of goods and services registered an increase of 20.3% during the second quarter of 2023 in comparison to the corresponding period of the previous year, exports of goods and services experienced a decline of 9.0%.

In the labor sector, compensation of employees displayed a remarkable upsurge of 116.3% in the second quarter of 2023, and net operating surplus/mixed income rose by 31.0% in comparison to the same quarter of the previous year.

The composition of the Gross Value Added saw the share of compensation of employees at current prices rise to 34.3% in the second quarter of 2023, marking a notable increase from the previous year's 25.3%. On the other hand, the share of net operating surplus/mixed income declined to 43.8% from the previous year's 53.3% for the same quarter.

This data portrays a dynamic economic landscape for Türkiye, indicating both areas of substantial growth and challenges that need further attention. (ILKHA)