ISTANBUL: Turkey’s economy grew 3.0% year-on-year in the fourth quarter of 2024, bringing full-year growth to 3.2%, official data showed on Friday, exceeding forecasts despite the weight of high interest rates.
The government, which had initially projected 3.5% growth for 2024, had trimmed its expectations to reflect ongoing adjustments in domestic demand and efforts to slow down annual inflation, which exceeded 75% in May and is now just over 40%.
Finance Minister Mehmet Simsek said balanced growth was achieved in 2024 with the contribution of 2.1 points from domestic demand and 1.1 points from net foreign demand.
“More favourable financial conditions in line with disinflation, increased predictability with our policies and improved confidence will positively affect economic activity,” he said in comments on the economic outlook.
Increased growth among Turkey’s trade partners, more supportive global financial conditions and moderate commodity price expectations will positively affect growth in 2025, but increasing protectionist policies in global trade and geopolitical developments are among the risk factors, he said.
Fourth-quarter gross domestic product rose 1.7% from the previous quarter on a seasonally and calendar-adjusted basis, Turkish Statistical Institute (TUIK) data showed.
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