Turkey’s Q2 GDP Growth Surges on Agriculture, Construction Slumps

Turkey’s second quarter saw a standout 13.3 % growth in agriculture, while construction contracted by 1.9 %.

Agricultural Surge: 13.3 % Growth

■Agriculture, forestry, and fishing grew 13.3 %, topping sectoral growth.

■This sector’s share of GDP reached 15.6 %, the highest among all.

■Year‑on‑year, a 12.9 % increase signals renewed investment interest.

Quiet Signals from Industry and Finance

■Industry rose 2.4 %, but lagged behind wholesale and retail trade’s 12.9 % growth.

■Financial and insurance activities grew 2.1 %, maintaining stability.

■Real‑estate activity grew 2.1 %, yet the housing sector remains flat.

Construction’s Sharp Decline

■Construction contracted 1.9 %, tightening the growth floor.

■Household consumption on housing, water, electricity, gas and other fuels grew 18.0 %—the largest consumer spend.

■The downturn may reflect tightening credit conditions and rising rates.

Consumer Spending’s Rising Star

■Household final consumption rose 3.5 %, the biggest growth driver.

■Food and non‑alcoholic beverages 21.4 %, housing 18.0 %, and transportation 15.0 % dominated spending.

■Government final consumption fell 1.8 %.

Trade’s Turning Point

■Exports of goods and services grew 3.4 %, imports fell 6.4 %.

■Net exports added 0.57 points to growth.

■The import decline reflects currency volatility.

Labor Pay and Profit Margins

■Labor pay rose 36.7 %, holding 38.1 % of GDP.

■Net operating surplus increased 38.7 %, reaching 41.6 % of GDP.

Annual GDP and Sector Shares

■2025 GDP grew 41.6 % to 63 trillion 240 billion 524 million TRY.

■Manufacturing accounted for 15.6 %, motor vehicle repair 9.2 %, and real‑estate 9.2 % of the largest shares.

■Per‑capita GDP was 714,682 TRY, or 18,103 USD.

Turkey’s Q2 growth is propelled by an exceptional agricultural boom and robust consumer spending, yet construction’s contraction and declining imports signal challenges ahead for the housing market and external trade dynamics, reshaping risk profiles for investors.