Turkey’s economy contracts by 9.9% in second quarter

The Turkish economy contracted almost 10% in the second quarter of 2020 and the foreign trade deficit has been 2.7 billion dollars in July, according to the data issued by the Turkish Statistical Institute (TURKSTAT).
Wednesday, 02 September 2020 09:29

TURKSTAT announced the growth figures of the second quarter of the year. Turkey’s economy contracted by 9.9% in the second quarter as the coronavirus lockdown brought activity to a near standstill.

The highest contraction was recorded in the services sector by 25%, while the industrial sector shrank by 16.5%.

As for the activities included in the GDP, agricultural activities increased by 4%, information and communication activities by 11%, financial and insurance activities by 27.8%, real estate activities by 1.7%. On the other hand, the industrial sector decreased by 16.5%, construction sector by 2.7%, services by 25%, professional, administrative and support services activities by 16.5%, public administration, education, human health, and social services activities by 2.4% and other service activities by 18%.

The increase in the financial and insurance services revealed that the limiting effect on the contraction resulted from the expansion of credit volume, namely the increase in borrowing, especially for state banks.

Seasonally and calendar-adjusted GDP chained volume index decreased by 11% compared to the previous quarter. The same index decreased by 10 percent in the second quarter of 2020 compared to the same quarter of the previous year.

The estimated GDP increased by 1.3% in current prices in the second quarter of 2020 compared to the same quarter of the previous year, reaching 1 trillion 041 billion 643 million TRY [$141,274,209].

Imports of goods and services decreased by 6.3% and exports by 35.3% in the second quarter of 2020 compared to the same quarter of the previous year.

The compensation of employees with current prices in Gross Value Added was 36.7% in the second quarter of last year, while it decreased by 36.8% this year.


TURKSTAT also announced the provisional foreign trade data for July in cooperation with Turkey’s Ministry of Trade.

According to the statistics, as a part of the General Trade System (GTS), exports amounted to 15 billion 12 million dollars in July, decreasing by 5.8% compared to the same month of the previous year, and imports amounted to 17 billion 709 million dollars, decreasing by 7.9%.

The foreign trade deficit in July decreased by 18.2% to 2 billion 697 million dollars. The export/import coverage ratio increased from 82.9% in July 2019 to 84.8% last month.

Exports decreased by 13.1% in the January-July period compared to the same period of the previous year, decreasing to 90 billion 15 million dollars, while imports shrank by 3.9% to 116 billion 605 million dollars.

The foreign trade deficit for the January-July period reached 26 billion 590 million dollars, increasing by 55.6%. The export/import coverage ratio was 85.9% in January-July 2019, while it decreased to 77.2% in the same period of this year.