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THE TURKISH ECONOMY
Turkey had to contend with quite difficult issues on both
the political and the economic fronts in 2016.
In 2016 the Turkish economy was overshadowed by adverse
global developments, by intractable conditions in the Middle
East, and by a diplomatic crisis with Russia. In addition to all
of that, the country also had to contend with an attempted
military coup on July 15
th
and with the state of emergency
that had to be imposed in its aftermath. The confluence of so
many hardships inevitably obstructed the ordinary course of
economic activity.
Gross domestic product increased by 2.9% in 2016.
Internal/national dynamics contributed as much to the
difficulties that confronted the Turkish economy last year as did
global ones. Despite such an unfavorable environment however,
the growth rate, which is the most telling indicator of economic
activity, continued to hold up.
In line with revisions in national income account calculations
according to the chain index method (2009=100) made by
TurkStat in the third quarter of 2016, projected 4
th
-quarter 2016
GDP was 3.5% higher than what it was in the second quarter
of the previous year. In terms of current prices it amounted to
TL 734.4 billion.
Twelve-month GDP as expressed as the total of four previous
quarters calculated using the production method was
2.9% higher year-on in 2016 according to the chain index
method. Current-price GDP increased by 10.8% year-on in
2016 and reached TL 2.6 trillion. Looking at a breakdown of
year-on changes in activities that make up GDP as reported
according to the same method we see that the total added-
value contribution of agriculture was down by 4.1%, that the
contributions of manufacturing and construction were up
by 4.5% and 7.2% respectively, and that the contribution of
services slipped by 0.8%.
Current-price per capita GDP weighed in at TL 32,676
(USD 10,807) in 2016.
2.9%
GDP growth rate
Twelve-month GDP as expressed as the total of four
previous quarters calculated using the production
method was 2.9% higher year-on in 2016 according
to the chain index method.
GDP Growth
Year
GDP
(Current prices - TL million)
Change
(%)
Growth rate
(%)
GDP per capita
(USD)
2010
1,160,014
16.1
8.5
10,560
2011
1,394,477
20.2
11.1
11,205
2012
1,569,672
12.6
4.8
11,588
2013
1,809,713
15.3
8.5
12,480
2014
2,044,466
13.0
5.2
12,112
2015
2,337,530
14.3
6.1
11,014
2016
2,590,517
10.8
2.9
10,807
Source: TurkStat
Developments in the World and Turkish
Economies
Annual Report 2016
The Association of Financial Institutions
36