Developments and Expectations in Türkiye’s Economy

Despite negative developments such as intensified supply shocks due to the Russian-Ukrainian war and increased uncertainty, Türkiye’s economy remained strong during the first three quarters of 2022 thanks to the measures taken.

In 2022

5,6% Growth

After growing by 7.6% in the first quarter and 7.8% in the second quarter of the year, Türkiye’s economy continued to grow at an annualized rate of 4.0% in the third quarter, reflecting the deceleration in global demand. Despite growing concerns about a global recession, Türkiye’s economy continued to expand by 3.5% in the final quarter of 2022, bolstered by robust consumption growth.

Thus, Türkiye’s economy extended its uninterrupted growth performance into the tenth quarter, and with a growth rate of 5.6% in 2022, Türkiye became one of the countries with the highest growth rate among developing countries.

Despite fluctuations in the Euro/Dollar exchange rate and the negative effects of rising geopolitical risks on the European economy, our largest export partner, Türkiye’s economy, was able to maintain its export strength and reach 254.2 billion USD with an annual growth rate of 12.9% by the end of the second quarter of the year. Imports, on the other hand, grew by 34% to 363.7 billion USD, as a result of the increase in energy prices and gold imports.

In 2022, supply constraints became more pronounced due to geopolitical risks, and there were rapid increase in global commodity and food prices, particularly energy. Consequently, annual consumer inflation reached 64.3% by the end of 2022, while producer inflation reached 97.7%.

In 2023, inflation is expected to decline due to the impact of the slowdown in global economic activity, the anticipated decline in commodity prices, and the stabilization of the foreign exchange market with the help of macroprudential measures.

Source: TURKSTAT, CBRT, Republic of Türkiye Ministry of Treasury and Finance