The Turkish economy shrank by 1.5 percent year-on-year in the second quarter of 2019, easing from a downwardly revised 2.4 percent contraction in the previous three-month period and compared with market expectations of 2 percent fall.
On the expenditure side, household consumption decreased 1.1 percent in the second quarter (vs -4.8 percent in Q1); and fixed investment plummeted 22.8 percent (vs -12.4 percent in Q1). Meanwhile, government spending went up 3.3 percent (vs 6.6 percent in Q1), and net external demand contributed positively to the GDP growth, as exports jumped 8.1 percent (vs 9.2 percent in Q1) buyoed by a persistent currency weakness and imports tumbled 16.9 percent (vs -28.9 percent in Q1).
9/2/2019 3:52:01 PM
On the production side, services output dropped 0.3 percent (vs -3.4 percent in Q1), mainly due to professional, administrative and support service activities (-4.3 percent vs -12.5 percent) and other service activities (-2.9 percent vs -1.7 percent); while growth was recorded for information and communication (2.4 percent vs 1.4 percent), financial and insurance activities (9.3 percent vs 2.1 percent), real estate activities (2.8 percent vs 1.6 percent), and public administration, education, human health and social work activities (2.5 percent vs 8.9 percent). In addition, agriculture, forestry and fishing grew at a faster pace (3.4 percent vs 1.3 percent). Meanwhile, industrial output slumped 2.7 percent (vs -3.9 percent in Q1) due to manufacturing weakness (-3.3 percent vs -4.2 percent), while construction output tumbled 12.7 percent (vs -9.3 percent in Q1).
On a seasonally adjusted quarterly basis, the economy expanded by 1.2 percent in the second quarter, following an upwardly revised 1.6 percent growth in the previous period.