Turkey's economy grows 3.6% in 2025, just below forecasts
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Residential housing stretches to the horizon of Istanbul's skyline in Turkey June 13, 2018. REUTERS/Russell Boyce
ISTANBUL, March 2 (Reuters) - The Turkish economy expanded 3.4% year-on-year in the fourth quarter, bringing full-year growth to 3.6%, official data showed on Monday, with both levels being just below forecasts.
In a Reuters poll, the economy was expected to have grown 3.5% in the fourth quarter and 3.7% in 2025 overall. Growth had slowed to 3.3% in 2024 from 5.0% the previous year.
Economic growth last year was led by the construction sector, with the total value-added increasing by 10.8%, followed by information and communication activities at 8%, the Turkish Statistical Institute (TUIK) data showed.
The agriculture, forestry and fishing sector contracted by 8.8%.
Fourth-quarter gross domestic product (GDP) rose 0.4% from the previous quarter on a seasonally and calendar-adjusted basis, TUIK said.
Turkish economic officials had said they expected last year's growth to slightly exceed the government's 3.3% forecast. They expect a supportive global environment to strengthen activity further this year.
In a statement, Finance Minister Mehmet Simsek said increased demand from trading partners and improvements in financial conditions are expected to contribute to growth in 2026, assuming that risks stemming from geopolitical developments are temporary and uncertainties in global trade decrease.
In its three-year economy roadmap, the government expects the economy to grow by 3.8% this year.
Growth in the third quarter was revised to 3.8% from 3.7%, and second-quarter growth was revised to 4.7% from 4.9%, the data also showed.
Moody's forecasts Turkey's 2025 economic growth at 3.2%, while the World Bank last month raised its estimate to 3.5% from 3.1%.
(Reporting by Can Sezer; Writing by Daren Butler; Editing by Jonathan Spicer and Bernadette Baum)
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