Turkey’s economy expanded by 3.4% year-on-year in the fourth quarter of 2025, down from a revised 3.8% in the third quarter and just below market expectations of 3.5%. Growth in fixed investment slowed markedly to 5.4% from 11.5% in Q3, while government spending shifted into contraction (-0.9% vs 2.5%). Net exports also weighed on overall growth, as exports declined further (-2.3% vs -0.8%) and imports continued to rise (3.8% vs 4.4%).
These drags were partially offset by resilient household consumption, which accelerated to 5.2% from 4.3% in the previous quarter. On the production side, activity weakened across most sectors, most notably in manufacturing (0.9% vs 7.6%), construction (8.6% vs 14.1%), trade, transportation, accommodation and food services (4.2% vs 6.5%), and financial and insurance activities (4.1% vs 11.1%).
On a quarterly basis, GDP increased by 0.4%, easing from a revised 1.0% expansion in Q3. For the full year 2025, the Turkish economy grew by 3.6%.
