The economic growth rate for the Turkish economy in 2023 has been revealed. According to TÜİK data, the Turkish economy grew by 4.5 percent in 2023.
Now, what about the growth rate of the expenditures determining the GDP and the economic activities constituting the resulting GDP?
CONTRIBUTION OF EXPENDITURES TO ECONOMIC GROWTH
When we look at the household expenditures in 2023, it is observed that households had the highest expenditure share with a 12.8 percent increase in consumption expenditures compared to the same period of the previous year.
In 2023, the share of household expenditures in GDP was 59.1 percent.
On the other hand, while final consumption expenditures by the government increased by 1.7 percent, gross fixed capital formation increased by 10.7 percent.
Moreover, while imports of goods and services increased by 11.7 percent throughout 2023, exports decreased by 2.7 percent. Increasing the contribution of exports becomes crucial for the increase in economic growth rate.
GROWTH RATES IN ECONOMIC ACTIVITIES CONSTITUTING GDP
When the activities constituting GDP in 2023 are examined; financial and insurance activities increased by 9.0 percent, construction by 7.8 percent, services by 6.4 percent, real estate activities by 2.7 percent, and information and communication activities by 1.3 percent.
While the agricultural sector decreased by 0.2 percent, the industrial sector increased by 0.8 percent.
PER CAPITA INCOME AND INCOME GROUPS IN 2023
Türkiye ranked second among OECD countries and third among G20 countries with its 4.5 percent growth rate. Türkiye's per capita income in 2023 was calculated as 13,110 dollars.
As known, the World Bank classifies countries as low-income, middle-income, and high-income countries. According to this, countries with a per capita income below 1,135 dollars are classified as low-income countries, countries with incomes between 1,136 and 13,845 dollars are classified as middle-income countries, and countries with incomes of 13,846 dollars and higher are classified as high-income countries.
Due to the wide range of 1,136-13,845 dollars used to classify middle-income countries, the World Bank divides these countries into two groups: lower-middle-income countries with incomes between 1,136-4,465 dollars and upper-middle-income countries with incomes between 4,466-13,845 dollars.
With its per capita income of 13,110 dollars, Türkiye remains in the upper-middle-income countries group and is very close to entering the high-income countries group. Therefore, for Türkiye to enter the high-income countries group, it is vitally important for economic growth to be sustainable, meaning that the momentum in economic activity continues.
