September was marked by the announcement of Q2 2021 growth: Turkey recorded an impressive growth of 21.7% year-on-year to be among the three fastest growing countries in the world and the second largest country within the OECD. After this announcement, economists' forecasts for the end of 2021 have been revised upwards and now stand between 8 and 9.5% (compared to around 5% previously).
Growth was driven by the service sector which posted + 45.8% growth in Q2 2021 year-on-year, despite partial closure measures in effect during this same period. Industrial production, which contracted 15.9% in Q2 2020, saw strong growth of 40.5% in Q2 this year. Finally, the reopening of shops has benefited purchases of goods. After contracting 9.2% in Q2 2020, the consumer sector posted 22.9% growth this year. This trend should continue in Q3 with the opening of stores.
On the health front, Turkey is continuing its vaccination campaign. To date, around 50% of the Turkish population has received two doses of the vaccine. Schools reopened face-to-face on September 6, as well as certain entertainment places such as the theater, cinema, discos or concerts, which require either double vaccination or a negative PCR test. Travel between France and Turkey is now easier: French travelers vaccinated (two doses) or cured of Covid during the last 6 months are exempt from PCR test and quarantine with a certificate of vaccination or cure.
Finally on the investment side, the summer period was rich in acquisition announcements; foreign companies have resolutely taken advantage of the revival of the global economy to establish themselves in Turkey. The diversity of the sectors targeted as well as the diversity of the origin of investments demonstrate once again the attractiveness of the Turkish economy which continues to raise the interest of international investors.
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