Türkiye’s Economy Expands 4.8% in Q2 2025, Minister Şimşek Eyes High-Income Status

Türkiye’s economy grew 4.8% year-on-year in the second quarter of 2025, while seasonally and calendar-adjusted growth reached 1.6% compared to the previous quarter, according to figures announced by the Turkish Statistical Institute (TÜİK).

Minister of Treasury and Finance Mehmet Şimşek highlighted that these results pushed Türkiye’s annualized GDP close to $1.5 trillion, underlining the government’s medium-term program is “clearly delivering results.”

“With the latest growth data announced by TÜİK, national income series were revised within the framework of the Harmonized European Revision Policy. Improvements in data sources, updated calculation methods, and scope changes did not cause a fundamental shift in the series,” Şimşek explained.

Path Toward High-Income Country Status

Şimşek emphasized that Türkiye is closing in on an important milestone:

“According to the World Bank’s classification, our chances of joining the high-income country group in 2025 have increased. We are approaching a critical threshold in achieving our program’s ultimate goal of permanent prosperity growth.”

Sectoral Contributions

The Q2 2025 results showed broad-based sectoral improvements, except for agriculture, which contracted due to frost damage. Key highlights included:

• Manufacturing recorded its best performance in 12 quarters, supported by strong demand and exports.

• High-tech production surged by 40% year-on-year, marking a significant qualitative shift in industrial output.

• Balanced growth continued between consumption and investment, indicating a healthier economic structure.

Despite global headwinds, exports increased, though a surge in import demand and robust domestic production caused net external demand to subtract from growth.

Meanwhile, the current account deficit fell to a sustainable level, standing at 1.3% of GDP on an annualized basis.

Disinflation and Stability

Şimşek stressed that the combination of stronger growth and falling inflation underscores the success of Türkiye’s current economic strategy:

“Along with the rise in annual growth in the second quarter, disinflation continues. This clearly demonstrates the success of our program.”

Looking Ahead: More Favorable Financial Conditions

Şimşek forecast that improving global trade conditions and more favorable financial environments would help Türkiye’s growth move gradually toward its potential level in the coming quarters.

“We will soon share with the public our Medium-Term Program for 2026-28. With strong policy coordination, we will continue implementing our program decisively to ensure price stability, achieve sustainable high growth, and further enhance the welfare of our citizens.”