The Turkish economy expanded by 5.2 percent year-on-year in the second quarter of 2018. Meanwhile, seasonally and calendar adjusted data shows that the economy expanded 0.9 percent from the first quarter to the second quarter of 2018, which indicates that the growth momentum has been sustained. Recent growth figures of 7.3 percent and 5.2 percent in the first and second quarters of 2018 respectively indicate a rebalancing in the Turkish economy.
Out of the 5.2 percent headline growth, 3.8 ppt came from private consumption, 1.2 ppt from investment expenditures, 1 ppt from government consumption, and 0.9 ppt from net export, calculated as export minus import. On the other hand, stock changes deducted 1.7 ppt from growth. Notable contributions from investment spending and net exports show that the quality of growth has significantly improved.
Moreover, Turkey is one of the fastest growing economies in comparison to peer economies, as illustrated in the following chart.