Turkey's economic growth slowed further in the first quarter of 2026, coming in below expectations, official data showed on Monday.
Gross domestic product expanded 2.5% year-on-year in the January-March period, following growth of 3.4% in the previous quarter, according to the Turkish Statistical Institute. Economists had expected growth of 2.7%.
The expenditure breakdown showed household consumption growth eased to 4.8% from 5.2%, while government spending rose 2.1%.
Growth in gross fixed capital formation slowed to 3.0% from 5.4% in the fourth quarter. Net foreign demand weighed on the economy as exports fell 12.7% year-on-year, outpacing a 2.0% decline in imports.
On a quarterly basis, the economy expanded 0.1%, slowing from 0.4% growth in the previous three months.
Separate survey data from S&P Global showed that the Istanbul Chamber of Industry Manufacturing Purchasing Managers' Index rose to 49.8 in May from 45.7 in April.
The latest reading was the highest since March 2024 and pointed to near-stabilization in business conditions. Output returned to growth and purchasing activity increased as manufacturers built safety stocks amid price pressures and supply disruptions linked to the war in the Middle East.
