Turkey's 2003 GDP and GNP surpass expectations

Turkey’s 2003 GDP and GNP surpass expectations

Based on the data released by State Institute of Statistics (DIE), Turkey's GDP (Gross Domestic Product) increased by 5.8% and GNP (Gross National Product) by 5.9% in 2003. These figures are better than market expectations of 5.3% for GDP and GNP. Private final consumption expenditures soared by 10.3% in the last quarter of 2003 and by 6.6% for the whole year. The rise in final consumption in the fourth quarter was expected. In the last quarter, investments picked up as public sector investments indicated an upward trend. Public sector capital formation surged by 5% in the fourth quarter and by 11.5% for the whole year. Private sector investments grew by 30% in the fourth quarter of 2003 and reached the 2003 growth in this sector to 20% level. Government final consumption expenditures maintained its negative situation in the last quarter as a result of the tight fiscal policy. Turkey's industrial output soared by 9.2% and trade also grew by 9.2% in the last quarter. These figures brought up last quarter GDP growth to 6.1% and GNP growth to 7.2%. The improvement in trade is attributed to the increase in domestic demand. In addition, construction sector showed a positive result in the fourth quarter of 2003 for the first time since the financial crisis.