Türkiye's economy will grow by 5.6% in 2022

According to the data released by Türkiye's Statistics Bureau on February 28, the country's gross domestic product (GDP) in 2022 will grow by 5.6%, higher than the outside expectation, but the GDP in the fourth quarter will only grow by 3.5% compared with the same period in 2021, showing a significant downward trend since the second half of last year.

The revised latest data shows that Türkiye's GDP in the first three quarters grew by 7.6%, 7.8% and 4% respectively compared with the same period of the previous year.

The data also shows that Türkiye's financial and insurance industry grew fastest last year, reaching 21.8%; The growth rates of the service industry, industry, and agriculture were 11.7%, 3.3%, and 0.6% respectively, while the construction industry shrank by 8.4%.

Türkiye's economic operation will face high inflation pressure in 2022. Last October, the inflation rate reached 85.51%, the highest in 24 years. Different from other major central banks' measures to deal with inflation, Türkiye's central bank has repeatedly announced interest rate cuts to promote economic growth. The Central Bank of Türkiye announced on February 23 that it would cut the benchmark interest rate by 50 basis points to 8.5%. This is the first interest rate cut since Türkiye announced the end of the last round of interest rate cut cycle last November.