HARSH BRAKE IN 2ND QUARTER GROWTH
Seyfettin Gürsel and Selin Köksal
From the first quarter of 2016 to the second, GDP grew by 0.3 percent which is below expectations. On yearly basis, Turkish economy also showed low performance by growing 3.1 percent in the second quarter of 2016.
Private consumption and net export are two components that dragged down the quarterly economic growth. The negative contribution of net exports was expected. However the fall by 2.8 percent in exports combined with the unexpected decline in private consumption by 0.5 percent affected economic growth in a negative way.
On the other hand, a positive surprise came from, private investments that grew by 6 percent and government spending contributed also positively to GDP growth increasing by 3.5 percent. Finally, these opposite changes produced a limited growth in quarterly GDP.