Türkiye’s economy expands despite construction sector slump

Türkiye’s economy expanded for a fifth consecutive year, with gross domestic product (GDP) increasing by 2.3% year-on-year in the second quarter of 2026, Turkish Statistical Institute (TÜİK) confirmed.

The April-June growth was measured using chain-linked volume indices. In current-price terms, GDP rose 36% year-on-year to 19.87 trillion Turkish liras ($438.35 billion).

The agriculture, forestry and fishing sector posted the strongest expansion during the quarter, growing 13.3% from a year earlier. The information and communications sector followed with growth of 8.6%, while public administration, education, healthcare and social services increased by 4%.

Other services grew 3.2%, while industrial output increased by 2.4%. Financial and insurance activities expanded by 2.1%, and professional, administrative and support services rose 2%.

The construction sector was the only major area to record a contraction, shrinking 1.9% year-on-year.

Despite the continued expansion, the quarterly figure came in below market expectations. Economists surveyed had forecast 2.8% growth for the second quarter, pointing to a weaker-than-anticipated pace of economic expansion.

By Vafa Guliyeva