Turkish economy grew by 1.8% in 2020

Turkey was one of the few countries that grew in 2020 with a growth rate of 1.8%, becoming the third-fastest growing country after China and Taiwan. According to the data by TurkStat, in the last quarter of 2020, the growth underperformed expectations with only 5.9%. This was caused by the contraction of the construction sector and the halt of exports. Meanwhile, the engine of growth was industrial production and consumption expenditures of the public. Analysts’ expectations were 7% growth in the last quarter. In the government’s New Economy Program, the growth forecast for 2020 was 0.3%. Analysts state that 1.8% growth may cause a downward revision in growth expectations for 2021 and foresee a strong but below 6% growth in the first quarter of 2021, due to restrictions and the tight monetary policy.

National income per capita decreased by USD 610

According to TurkStat data, seasonally and calendar-adjusted GDP grew by 1.7% in the last quarter, compared to the previous period. Calendar adjusted GDP, increased by 5.8% in the fourth quarter of 2020, compared to the same quarter of the previous year. GDP per capita in 2020 stood at TL 60,537, at current prices. The GDP per capita in 2020, was calculated as USD 6,599. National income, in dollar terms, decreased by approximately USD 610 since 2019.

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