Key facts
- Turkey's GDP grew 2.5% year-on-year in Q1.
- Household spending increased by 4.8% year-on-year.
- Exports of goods and services decreased by 12.7% year-on-year.
- Industrial manufacturing output contracted.
- Corporate profit shares softened due to weaker activity.
Turkey's economy grew by 2.5% year-on-year in the first quarter, a slowdown that fell slightly below forecasts. The growth was primarily supported by a 4.8% increase in household spending. However, this was counteracted by a significant 12.7% year-on-year decline in exports of goods and services, which acted as a drag on overall economic expansion. While sectors like technology and farming showed growth, industrial manufacturing output contracted. Corporate profit margins also faced pressure as softer economic activity impacted profitability.