Turkish economy grows 2.6 pct in 2018

ANKARA

The Turkish economy grew by 2.6 percent in 2018, the country's statistical authority announced Monday.

TurkStat noted that gross domestic product (GDP) at current prices totaled 3.7 trillion Turkish liras (some $784 billion) last year.

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.

"The GDP per capita in 2018 was 45,463 Turkish liras -- $9,632 at current prices," TurkStat said, compared with 38,660 liras ($10,597) in 2017.

The institute noted that the value added increased by 1.3 percent in the agricultural sector and 1.1 percent in the industry sector last year, while decreased by 1.9 percent in the construction sector.

The services sector's value added -- wholesale and retail trade, transport, storage, accommodation and food service activities -- surged 5.6 percent on a yearly basis.

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 [Q4] compared with the previous quarter [Q3]," the institute added.

Turkey aims to reach economic growth rate of 2.3 percent this year, 3.5 percent in 2020 and 5 percent by 2021 under its new economic program announced last September.