Turkey's economy grew faster than expected between April and June, extending its streak of 20 consecutive quarters of growth despite continued efforts to tighten monetary policy.
Gross domestic product (GDP) in the second quarter increased by 4.8% from a year earlier and by 1.6% from the January-March period on a seasonally and calendar-adjusted basis, the Turkish Statistical Institute (TurkStat) said, as quoted by Daily Sabah.
Economists said the quarter benefited from more working days than in the same period a year earlier and from a low base from last year.
Expectations for the April-June growth rate range from 3.8% to 4.1%, according to surveys. The government is forecasting 4% growth this year. It is expected to update its forecasts early this month.
First-quarter growth was revised upwards to 2.3% from 2%, TurkStat data also showed, while economic expansion was slightly revised upwards to 3.3% from a previous 3.2% last year.
The institute also published a paper along with the data detailing the revision of the GDP series as part of efforts to align with the European System of National Accounts.
Approaching potential growth
Minister of Finance and Treasury Mehmet Simsek said that Turkey's economy is on track to gradually approach the potential growth rate as global trade uncertainty eases and financial conditions become more favorable.
He noted that the revisions to the national income series have not led to “no fundamental change“, emphasizing that growth in the first half of the year was 3.6% and annual GDP is close to 1.5 trillion USD.
Şimşek stressed that disinflation continues in parallel with growth, adding that the government will soon announce the Medium Term Program (MTP) for 2026-2028, aimed at ensuring “price stability and sustainable high growth“ through stronger policy coordination.
The momentum comes against the backdrop of changing monetary policy and as markets continue to watch how global trade tensions and interest rate moves will shape growth prospects through the end of the year.
In December, the Central Bank of the Republic of Turkey (CBRT) began a monetary policy easing cycle after keeping the key interest rate steady for eight months. Inflation has fallen from 75% last year.
The central bank tightened policy in April to provide stability after market volatility over the arrest in March of Istanbul Mayor Ekrem Imamoglu.
Imamoglu has been jailed pending trial on corruption charges.
The bank recently returned to easing monetary policy, with inflation falling to around 33%, and said the impact of the tight policy could be seen in slowing demand conditions.
Industry and Technology Minister Mehmet Fatih Kaçir stressed that Turkey had maintained uninterrupted growth for 20 consecutive quarters.
Kaçir noted that the industrial sector expanded by 6.1% in the second quarter, underscoring the role of high-value-added manufacturing, exports and employment in boosting development.
2nd among OECD countries, 4th in G20
Trade Minister Omer Bolat said that Turkey was ranked as the second fastest growing economy among the Organization for Economic Cooperation and Development (OECD) countries and the fourth fastest growing in the G20 in the second quarter.
Bolat emphasized that exports of goods and services contributed 0.4 percentage points to growth, and investment spending showed a steady growth of 8.8%, adding 2.2 percentage points to the expansion.
He said that investment has consistently supported growth for the past three consecutive quarters and that the growth in production, investment and exports is also reflected in labor market indicators.
„Turkey's economy achieved strong growth in the second quarter, while exports increased, inflation and unemployment decreased, and investment accelerated“, Bolat wrote on the social media platform X.
“Supported by growth in the industrial and service sectors, the positive momentum in macroeconomic indicators continues to strengthen.“
Bolat added that annual GDP reached a record 1.47 trillion USD as of the second quarter, compared to nearly 1.36 trillion USD in 2024.
Turkey's current account deficit, which was 5% of GDP in 2022, narrowed to 0.8% in 2024 and was 1.3% of GDP as of the second quarter of 2025, well below its historical average, the minister said.
Bolat cited the government's program, which he said is strengthening the process of rebalancing and stabilizing the economy despite global and regional uncertainties.
He said that the increase in national income, the improvement in the current account deficit, the decline in inflation, the reduction in interest rates, the increase in credit ratings, the reduction in the country's risk premium, the steps taken to ensure financial stability, the growth of foreign exchange reserves and efforts to ensure a fair distribution of social benefits contribute to this strengthening momentum.
Bolat also noted positive trends in the labor market, he said he.