Turkish economy sees record growth of 21.7% in Q2

By Aysu Bicer

ANKARA (AA) – The Turkish economy expanded 21.7% year-on-year in the second quarter of 2021, official data revealed on Wednesday.

It has been the highest annual growth rate since 1999.

The country's gross domestic product (GDP) at current prices increased 52.4% to 1.6 trillion Turkish liras ($188.6 billion) in the April-June period, according to the Turkish Statistical Institute (TurkStat).

Among the activities constituting GDP, the value added rose 45.8% in services and 40.5% in the industry, while financial and insurance activities decreased 22.7% during the same period.

Major economic indicators show economic activity rebounded with the economic confidence index jumping to 97.8 in June from 92.6 the previous month.

Last month, Turkish exports hit $16.4 billion, rising 10.2% year-on-year, while imports jumped 16.8% to $20.7 billion.

On Tuesday, international credit rating agency Moody's upgraded Turkey's economic growth forecast for 2021 from 5% to 6%.

It noted that a recovery in the tourism sector supported the growth in the Turkish economy, thanks to the ongoing global economic recovery and progress in the COVID-19 vaccination.

The country posted a 7% growth year-on-year in the first quarter while the global economy is still suffering from the coronavirus pandemic.