3RD QUARTER GROWTH HIGHER THAN EXPECTED
In the third quarter of 2017, according to seasonally and calendar day adjusted data, Gross Domestic Product (GDP) increased by 1.2 percent compared to the previous quarter and by 11.1 percent compared to the third quarter of last year. The highest contribution to annually economic growth has been provided by private consumption, growing by 11.7% (6.9 percentage points contribution). The contribution of investments that grew by more than 12 percent was 3.5 percentage points. Since contributions of exports and imports are in opposite directions and almost of equal size, it may be said that net foreign trade did not make any contribution to growth. On the contrary, the contribution of public consumption and stock change remained very small but positive.
Third quarter growth figures have largely guaranteed that the 5.5 percent GDP growth for 2017 projected in the 2018-2020 Medium Term Programme (OVP) will be exceeded. It is understood that the Credit Guarantee Fund and other incentives were effective in this success. Assuming that these incentives that support domestic demand will not continue in the same way over the next few years, policies that will ensure sustainable (and good quality) growth in order to meet the 5.5 percent growth target foreseen in the OVP for the coming years should be considered.