Türkiye’s economy demonstrated resilience in the first quarter of 2026, achieving a 2.5 percent growth rate despite facing geopolitical challenges, global uncertainties, and escalating energy costs. The country’s gross domestic product (GDP) increased on an annual basis from January to March, although this marked a slowdown from the 3.4 percent growth seen in the previous quarter. When adjusted for seasonal variations, the GDP showed a modest 0.1 percent expansion compared to the last three months of the previous year.
The deceleration in growth occurred amidst rising regional instability and heightened volatility in energy markets, which have exacerbated inflation pressures. Nevertheless, Türkiye has now marked an impressive streak of 23 consecutive quarters of economic growth. Finance Minister Mehmet Şimşek emphasized the economy’s resilience in the face of external shocks and a decline in demand from critical trading partners, noting that the national income has reached over $1.6 trillion.
Among the various sectors, information and communication led the way with a robust annual growth of 9.5 percent. Other sectors such as services, agriculture, trade, transportation, tourism, finance, and construction also experienced significant gains. Household consumption played a major role in driving economic activity, increasing by 4.8 percent compared to the same period in the previous year. Government expenditure also saw moderate growth.
However, the industrial sector faced a contraction of 0.8 percent, reflecting challenges in manufacturing and the broader impact of global economic headwinds. Economists predict that while Türkiye will continue to confront issues related to international market uncertainties and fluctuating energy prices, domestic demand and ongoing economic reforms are expected to bolster growth in the upcoming quarters.