Türkiye’s economy grew by 11 percent in 2021.

Türkiye’s economy reached its last 10-year-high growth performance with 11 percent in 2021. All the four quarters saw high growth rates, primarily due to the increase in foreign demand. Exports, which gained momentum with the change in global supply chains, sharp increase in industrial production and accelerating investments further drove growth. Following the successful national vaccination campaign, the restrictions on economic and social activities were gradually lifted, and accordingly, the expanding domestic demand supported economic growth.

The industrial sector achieved growth of 16.6 percent in 2021, thus breaking away from the overall economy. Household spending grew by 15.1 percent, public spending by 2.1 percent in the same year. Gross fixed capital investments also expanded by 6.4 percent. The contraction in construction investments and other assets limited this growth, and machinery and equipment investments, which are much more closely related to the industrial sector, showed a strong increase of 20.5 percent. Exports of goods and services contributed to the economic growth significantly with a 24.9 percent expansion, while imports of goods and services recorded a much more moderate increase with 2 percent. All these figures indicate that growth in 2021 was driven by industrial production and exports.