Turkish economy expands 5.7pc in Q1 on strong domestic demand

ISTANBUL: Turkey’s economy grew 5.7% in the first quarter, in line with expectations, official data showed on Friday, driven by strong domestic demand.

Growth is expected to slow during the rest of the year as the central bank’s aggressive monetary tightening in the face of soaring inflation weighs on economic activity.

The economy is predicted to grow 3.15% in 2024, according to a Reuters poll. Forecasts announced in September showed the government expects the economy to grow 4% this year.

Finance Minister Mehmet Simsek said thanks to rule-based, predictable policies, the country is heading towards more balanced and sustainable growth this year.

“Indicators for Q2 indicate that the balancing of the economy continues. We see balanced growth in 2024, with a positive contribution from net foreign demand,” Simsek said in a statement. Turkey’s economy grew an annual 4.5% in 2023 and 4% in the first quarter of that year, despite a slowdown in main trading partners and devastating earthquakes in February.