In a written statement, Şimşek assessed the gross domestic product data for the second quarter of 2026. He said Türkiye’s economy grew by 1.1% quarter-on-quarter and 2.3% year-on-year despite challenging global conditions during a period marked by geopolitical tensions.
Şimşek said annualized national income exceeded $1.7 trillion. He stated that industrial value added increased by 2.4% year-on-year, supported by the positive outlook in technology-intensive sectors, while the agriculture sector grew by 13.3%.
Domestic and external demand supported growth
Şimşek said private consumption grew by 3.5% and investment by 0.6%, adding that net external demand also made a positive contribution to growth. He noted that balanced growth was achieved in the second quarter with support from domestic and external demand.
Şimşek said geopolitical developments affecting trading partners and the rise in commodity prices, particularly energy prices, affected the current account deficit. The annualized current account deficit stood at $38.9 billion in the second quarter, while the ratio of the deficit to national income remained at 2.3%.
Fiscal space and debt indicators
Şimşek said significant fiscal space had been created through efforts to combat the informal economy, strengthen tax fairness and maintain spending discipline. He stated that a significant amount of tax revenue had been forgone under the sliding-scale pricing scheme to limit the impact of global price shocks on citizens and support disinflation. Despite this, he said budget performance continued on a positive path.
Şimşek said the ratio of gross external debt stock to national income remained stable at 31.6% as of the second quarter of the year. He stated that Türkiye’s total debt-to-national-income ratio was 91%, noting that this was below the average of 229% for developing countries and the global average of 306%.
Road map for 2027-2029
Şimşek said the economy’s strengthening macroeconomic foundations had increased its resilience to shocks. He added that growth was expected to increase gradually in the coming period thanks to progress in the disinflation process and more supportive global conditions.
Şimşek announced that the Medium-Term Program covering the 2027-2029 period would set out a road map to achieve price stability, strengthen growth potential through technological transformation and productivity gains, and secure lasting improvements in prosperity.
