Turkey's GDP growth over expectations

Turkey’s GDP growth over expectations

Turkey's State Institute of Statistics (SIS) announced that gross domestic product (GDP) indicated a 4.2 percent growth in the second quarter of 2005, while gross national product (GNP) showed a 3.4 percent growth in the subject quarter. While the GDP figure is over market consensus of 3.7 percent, the GNP figure is below market consensus of 3.8 percent. SIS also announced that the growth in the private investments increased to 15.8 percent in the second quarter of 2005 from 4.8 percent recorded in the first quarter of 2005. Moreover, an increase of 13.6 percent has been recorded in the machinery equipment investment. The growth in the private final consumption expenditures remained at 4.4 percent, on par with the expectations that the private final consumption would not be the main driving force in 2005. There has been a growth of 3.9 percent in industrial production, while the increase in trade and agriculture sector did not indicate any trend change compared to the previous period. On the other hand, growth in the construction sector reached 22.2 percent in the second quarter from the 16.5 percent growth recorded in the first quarter. In line with these figures, in the first half of 2005, GNP growth and GDP growth are 4.3 percent and 4.5 percent, respectively.