Turkey's economy grew by 2.6 percent in terms of real gross domestic product (GDP) in 2018 compared to the previous year, the Turkish Statistical Institute (TurkStat) figures showed Monday.
In current prices, Turkey's GDP increased by 19.1 percent in 2018 compared to the previous year, amounting to 3.7 trillion Turkish liras (some $784 billion), TurkStat said.
Last week, a group of 15 economists interviewed by Anadolu Agency forecast a 2.5-percent annual growth for the Turkish economy. Their forecasts hovered between 1.8 percent -- lowest estimate -- and 3.3 percent.
Per capita GDP was calculated as TL 45,463 ($9,632) at current prices, compared to TL 38,660 ($10,597) in 2017.
Total value added of the agriculture sector as a chained volume measure decreased by 1.3 percent in 2018, while the industrial sector increased by 1.1 percent and the construction sector decreased by 1.9 percent. The total value added of the services sector, consisting of trade, transportation, accommodation and food service, increased by 5.6 percent.
The economy shrank 3 percent in the fourth quarter of 2018, TurkStat said. The retraction put the annual real GDP below growth forecasts, which analysts revised down to 3 percent in December.
In 2009, Turkish economy shrank by 4.7 percent amid the global financial crisis. Between 2010 and 2019, the Turkish economy posted an average growth rate of 6.3 percent, with the highest growth experienced in 2011 at 11.1 percent and the lowest in 2016 with 3.2 percent.
In Q2 of 2009, Turkey experienced a recession of 7.7 percent, followed by a 2.9 percent recession in Q3. Following that quarter, the only quarter when the Turkish economy encountered a recession was Q3 of 2016, when the GDP slid by 0.8 percent.
Official figures revealed that the share of household consumption expenditures in GDP was 57.6 percent last year.
"In 2018, the share of government final consumption expenditures in GDP was 14.4 percent, while the share of fixed capital formation was 29.7 percent.
"According to the previous year's chain-linked volume index, final consumption expenditure by the government increased by 3.6 percent and gross fixed capital formation decreased by 1.7 percent," TurkStat said.
In the last quarter of 2018, the country's economy shrank 3 percent year-on-year, while the GDP growth rate was 1.8 percent in the July-September period.
"Seasonally and calendar-adjusted GDP decreased by 2.4 percent (in Q4) compared with the previous quarter (Q3)," the institute added.
In November, the Organisation for Economic Co-operation and Development (OECD) had predicted 3.7 growth for Turkey in 2018. OECD recently lowered its 0.4 percent recession forecast in 2019 to 1.8 percent. However, the 2020 growth rate was increased from 2.7 percent to 3.2 percent.
In 2017, real GDP growth was 7.4 percent year-on-year.
