In the first quarter of 2026, Türkiye’s economy grew by 2.5 percent, showcasing resilience in the face of geopolitical tensions, global uncertainties, and climbing energy costs. Official figures indicate that the gross domestic product (GDP) increased annually during the January to March period, although this marks a deceleration from the 3.4 percent growth seen in the preceding quarter. On a seasonally adjusted basis, the economy posted a modest 0.1 percent expansion compared to the previous three months.
This slowdown arises amidst escalating regional instability and heightened volatility in energy markets, factors that have intensified inflationary pressures. Despite these challenges, Türkiye has now sustained 23 consecutive quarters of economic growth. Finance Minister Mehmet Şimşek emphasized the economy’s resilience, attributing its strength to the ability to withstand external shocks and a decline in demand from major trading partners. He highlighted that the national income has exceeded $1.6 trillion, underlining the economy’s robustness.
The information and communication sector led the charge with the most significant annual growth at 9.5 percent. Other sectors such as services, agriculture, trade, transportation, tourism, finance, and construction also showed solid gains. Household consumption emerged as a crucial driver of economic activity, increasing by 4.8 percent from the same period last year, while government expenditure experienced moderate growth.
In contrast, the industrial sector faced challenges, contracting by 0.8 percent due to subdued manufacturing activity and the impact of global economic headwinds. Economists anticipate that Türkiye will continue to grapple with international market uncertainties and energy price fluctuations. Nonetheless, they expect domestic demand and ongoing economic reforms to bolster growth in the upcoming quarters.