The Turkish economy grew by 2.5 percent in the first quarter of 2026, while Gross Domestic Product (GDP) at current prices reached nearly TRY 17 trillion. During the period, household consumption continued to increase, whereas exports declined. Labor compensation and business income recorded growth, while information and communication activities emerged as the sector contributing the most to economic growth.
According to the first-quarter GDP estimates released by the Turkish Statistical Institute (TÜİK), GDP increased by 2.5 percent year-on-year based on the chain-linked volume index. Among the economic activities that make up GDP, information and communication activities recorded the highest growth with an increase of 9.5 percent in the first quarter. Other service activities grew by 5.2 percent, agriculture by 4.6 percent, trade, transportation, accommodation and food services by 3.7 percent, financial and insurance activities by 3.5 percent, construction by 3.2 percent, and real estate activities by 3.0 percent.
Taxes on products less subsidies increased by 2.0 percent, professional, administrative and support service activities rose by 1.9 percent, while public administration, education, human health and social work activities expanded by 1.8 percent. In contrast, the industrial sector contracted by 0.8 percent during the same period. Seasonally and calendar-adjusted GDP increased by 0.1 percent compared to the previous quarter, while the calendar-adjusted chain-linked volume index rose by 2.6 percent year-on-year. GDP calculated using the production approach increased by 35.7 percent at current prices compared to the same quarter of the previous year, reaching TRY 16 trillion 999 billion 977 million in the first quarter of 2026. During the same period, GDP amounted to USD 389.6 billion at current prices.
Household Consumption Continued to Rise
In the first quarter of 2026, final consumption expenditures of resident households increased by 4.8 percent year-on-year according to the chain-linked volume index. During the same period, government final consumption expenditures rose by 2.1 percent, while gross fixed capital formation increased by 3.0 percent. On the other hand, foreign trade in goods and services weakened. In the first quarter of 2026, exports of goods and services declined by 12.7 percent year-on-year based on the chain-linked volume index, while imports decreased by 2.0 percent.
Labor Compensation Increased
Labor compensation recorded a year-on-year increase of 35.9 percent in the first quarter of 2026, while net operating surplus/mixed income rose by 34.4 percent.
Looking at the distribution of income components within Gross Value Added, the share of labor compensation remained unchanged at 42.7 percent. Meanwhile, the share of net operating surplus/mixed income declined from 36.3 percent in the first quarter of 2025 to 35.8 percent in the same period of 2026.
