Turkey GDP Growth Slows in Q4

The economy of Turkey grew 3.4% year-on-year in the fourth quarter 2025, easing from a revised 3.8% expansion in the third quarter and coming in slightly below market expectations of a 3.5% rise. Fixed investment growth slowed sharply (5.4% vs 11.5% in Q3), while government expenditure dropped (-0.9% vs 2.5%). Net trade also weighed on GDP, as exports declined (-2.3% vs -0.8%) while imports rose (3.8% vs 4.4%). However, these were partly offset by a sustained increase in household consumption (5.2% vs 4.3%). On the production side, activity moderated across most sectors, particularly 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 rose 0.4%, slowing from a revised 1.0% increase in the previous quarter. For the full year 2025, the economy expanded 3.6%.