Türkiye’s economy demonstrated resilience by expanding 2.5 percent in the first quarter of 2026, despite facing challenges such as geopolitical tensions, global uncertainties, and rising energy costs. Official data revealed that the gross domestic product (GDP) grew annually during the January-March period, although this marked a slowdown from the 3.4 percent growth seen in the previous quarter. On a seasonally adjusted basis, the economy showed a modest expansion of 0.1 percent compared to the preceding three months.
The economic deceleration occurred amid increased regional instability and volatile energy markets, which reignited inflationary pressures. Despite these hurdles, Türkiye has maintained a streak of 23 consecutive quarters of economic growth, a point highlighted by authorities. Finance Minister Mehmet Şimşek emphasized the country’s economic resilience in the face of external shocks and reduced demand from major trading partners. He also noted that national income has surpassed $1.6 trillion, underscoring the economy’s robust performance.
Among the various sectors, information and communication led the way with a remarkable annual growth of 9.5 percent. Other sectors, including services, agriculture, trade, transportation, tourism, finance, and construction, also reported solid gains. Household consumption played a crucial role in driving economic activity, with a 4.8 percent increase compared to the same period last year, alongside a moderate rise in government spending.
However, the industrial sector faced challenges, contracting by 0.8 percent due to weaker manufacturing activity and the adverse effects of global economic headwinds. Despite this setback, economists anticipate that Türkiye will continue to grapple with international market uncertainty and fluctuating energy prices. Nevertheless, domestic demand and ongoing economic reforms are expected to provide support for growth in the upcoming quarters.