Türkiye’s economy demonstrated resilience by achieving a growth of 2.5 percent in the first quarter of 2026, despite facing geopolitical tensions, global uncertainties, and escalating energy costs. According to official reports, the country’s gross domestic product (GDP) grew on an annual basis from January to March, although it marked a decrease from the 3.4 percent growth seen in the last quarter of the previous year. On a seasonally adjusted basis, the economy saw a modest expansion of 0.1 percent compared to the preceding three months.
The economy’s slowdown is attributed to increased regional instability and volatility in energy markets, which have heightened inflationary pressures. Nevertheless, Türkiye’s authorities have emphasized the country’s achievement of 23 consecutive quarters of economic growth. Finance Minister Mehmet Şimşek highlighted the economy’s resilience in the face of external shocks and reduced demand from major trading partners, pointing out that the national income has now exceeded $1.6 trillion, underscoring the economy’s robustness.
In terms of sectoral performance, the information and communication sector led with the strongest annual growth rate of 9.5 percent. Other sectors such as services, agriculture, trade, transportation, tourism, finance, and construction also reported solid gains. Household consumption emerged as a significant driver of economic activity, rising by 4.8 percent compared to the same period last year, while government expenditure showed moderate growth.
However, the industrial sector faced challenges, contracting by 0.8 percent as it grappled with weaker manufacturing activity and the adverse impacts of global economic headwinds. Economists predict that Türkiye will continue to encounter challenges stemming from international market uncertainties and energy price volatility. Despite these hurdles, domestic demand and ongoing economic reforms are expected to sustain growth in the forthcoming quarters.