Page 24 - TURKRptAUG19

4.0 Real Economy
Turkey - GDP breakdown (%)
2016
2017
2018
Q1/18
Q2/18
Q3/18
Q4/18
Q1/19
GDP Growth (y/y)
3.18
7.44
2.57
7.36
5.35
1.84
-2.98
-2.62
By Production -Agriculture
-2.58
4.88
1.32
7.27
-1.07
1.84
-0.46
2.53
Industry
4.20
9.11
1.06
7.90
4.00
0.13
-6.36
-4.34
Construction
5.40
9.00
-1.92
7.99
1.50
-5.57
-8.70
-10.89
Services
0.20
10.90
5.61
10.48
8.92
4.81
-0.26
-4.00
By Expenditure - Private Consumption
3.70
6.10
1.15
8.95
5.84
0.79
-8.90
-4.71
Government Consumption
9.50
5.01
3.59
3.49
7.80
3.42
0.46
7.22
Gross Fixed Capital Formation
2.20
7.81
-1.73
8.81
4.78
-4.75
-12.90
-13.01
Exports
-1.90
11.94
7.49
0.74
4.15
13.64
10.56
9.47
Imports (-)
3.70
10.32
-7.95
15.38
0.14
-16.76
-24.40
-28.82
source: tuik
4.1 Industrial production
Turkey’s white goods market, which saw a 9% decline in sales in the first half of this year, may contract 15% as a whole in 2019, according to Can Dincer, head of the Turkish White Goods Manufacturers’ Association (TURKBED). “Despite the tax reductions the government granted for white goods, sales nosedived in January-June. We expect a 20% contraction in the market in the final quarter of the year,” he said. The government slashed the special consumption tax on white goods in 2018 but extended the cuts until the end of June this year. “The tax cut, which greatly supported the industry, must be permanent. We are talking to government officials and have conveyed our demand to the government,” Dincer said. Local producers’ costs have soared 45%-50% due to the depreciation of the Turkish lira but the producers were not able to pass on the increase to consumers because of weak demand, Dincer noted. He underlined that exports had kept local white goods manufacturers afloat. “The local industry exports some 75% of its products. In the first six months of the year, shipments to foreign markets increased by 1% y/y to 10.1 million units,” Dincer said.
24 TURKEY Country Report August 2019 www.intellinews.com