Türkiye’s economy maintained positive momentum with a 2.5 percent growth in the first quarter of 2026, even as it navigated the challenges of geopolitical tensions, global uncertainties, and escalating energy prices. This growth, recorded annually from January to March, marked a deceleration from the 3.4 percent growth in the previous quarter. When adjusted for seasonal variations, the economy showed a modest expansion of 0.1 percent compared to the last three months.
The economic slowdown occurred against a backdrop of intensified regional instability and fluctuating energy markets, which fueled renewed inflationary pressures. Yet, despite these adversities, Türkiye has achieved an impressive track record of 23 consecutive quarters of economic growth, underscoring its resilience. Finance Minister Mehmet Şimşek emphasized that, in spite of external shocks and a decline in demand from major trading partners, the national economy has remained robust. He highlighted that the country’s national income had surpassed $1.6 trillion, indicating the economy’s substantial strength.
Among the various sectors, information and communication stood out with the highest annual growth rate of 9.5 percent. Other sectors that experienced significant growth included services, agriculture, trade, transportation, tourism, finance, and construction. Household consumption continued to be a central component of economic activity, increasing by 4.8 percent compared to the same period last year. Government spending also saw moderate growth.
However, the industrial sector faced a contraction of 0.8 percent, reflecting the impact of weaker manufacturing activity and global economic challenges. Economists predict that Türkiye will continue to grapple with uncertainties in international markets and fluctuations in energy prices. Nevertheless, they anticipate that domestic demand and ongoing economic reforms will play crucial roles in supporting future economic growth.