The Turkish Statistical Institute announced on Wednesday that the country’s economy surpassed market expectations with year-on-year growth of 4% in the first quarter. This development follows an annual expansion of 3.5% in Q4 2022, significantly higher than the anticipated 3% growth by economists surveyed by Anadolu Agency.
The impressive growth is noteworthy considering the debilitating effects of the Feb. 6 earthquakes. The growth was primarily driven by domestic demand, with household expenditures witnessing a significant jump of 16.2%. The construction sector also posted a robust growth of 5.1%, marking its best performance in five years.
Finance Minister Nureddin Nebati celebrated the achievement on Twitter, writing, “Our country has succeeded in being the second-highest growing country on an annual basis in Q1 among EU and OECD countries whose data are disclosed.”
Despite the growth, Turkey’s purchasing power has suffered due to a soaring inflation rate. In October 2022, it peaked at an alarming 85.5%—the highest in two decades. However, recent numbers indicate an easing trend, with the annual inflation rate standing at 43.68% in April.