In the first quarter of 2026, Türkiye’s economy grew by 2.5 percent, continuing its positive trajectory despite facing challenges such as geopolitical tensions, global uncertainties, and rising energy prices. Official data revealed that the country’s gross domestic product (GDP) increased on an annual basis from January to March, although this represented a slowdown from the 3.4 percent growth recorded in the preceding quarter. On a seasonally adjusted basis, the economy showed a modest expansion of 0.1 percent compared to the previous three months.
This deceleration occurred in the context of escalating regional instability and heightened volatility in energy markets, which have contributed to renewed inflationary pressures. Nonetheless, Türkiye has now recorded 23 consecutive quarters of economic growth, a milestone emphasized by authorities. Finance Minister Mehmet Şimşek highlighted the resilience of the national economy in the face of external shocks and reduced demand from key trading partners, noting that the national income has surpassed $1.6 trillion, a testament to the economy’s robustness.
Among various sectors, information and communication showed the most robust annual growth, surging by 9.5 percent. Other sectors such as services, agriculture, trade, transportation, tourism, finance, and construction also demonstrated solid gains. Meanwhile, household consumption emerged as a significant engine of economic activity, registering a 4.8 percent increase compared to the same period last year. Government spending saw a moderate rise as well.
However, not all areas thrived. The industrial sector experienced a contraction of 0.8 percent, reflecting subdued manufacturing activity and the impact of global economic headwinds. Despite these challenges, economists anticipate that domestic demand and ongoing economic reforms will continue to support Türkiye’s growth in the quarters ahead, although uncertainties in international markets and fluctuations in energy prices remain potential obstacles.