TÜİK May Data: Total Turnover Index Surges 32.9% Annually, Current Account Deficit Hits $1.5B

The Turkish Statistical Institute (TÜİK) revealed that the seasonally and calendar-adjusted total turnover index rose by 32.9% year-on-year in May, signaling a robust uptick in economic activity. However, the current account deficit widened to $1.5 billion during the same period. Here's the sector-by-sector breakdown:

Industrial and Construction: Mixed Signals in Core Sectors

■The calendar-adjusted industrial turnover index increased by 36.6% annually, while its seasonally adjusted counterpart rose 2.5% monthly.

■In the construction sector, calendar-adjusted turnover index gained 23% year-on-year, but seasonally adjusted figures declined by 5.6% compared to April.

Trade and Services: Consumption-Driven Growth

■Calendar-adjusted trade turnover index jumped 31.8% annually, with a 3% monthly increase after seasonal adjustments.

■The services sector saw a 34.8% annual rise in calendar-adjusted turnover, alongside a 3.6% monthly uptick.

Hakan Çelik

These turnover index figures underscore the resilience of domestic demand in the Turkish economy, yet the persistent current account deficit highlights unresolved structural imbalances. The industrial sector's strong performance, despite overall production fragmentation, contrasts with construction's seasonal contraction, hinting at housing market pressures. Trade and services reflect credit-driven consumption, but this growth model poses significant external vulnerabilities. The government must recalibrate fiscal policies within a transparent and sustainable framework to address these systemic risks.