
An Evaluation of Türkiye’s Economic Growth in the Post-2020 Period
Chapter from the book:
Uygun,
E.
(ed.)
2025.
Current Issues in Finance: Theory and Practice.
Synopsis
This study aims to examine the economic growth performance of the Turkish economy during the 2020–2024 period and the contributions of the agriculture, industry, and services sectors to this growth. During this period, Türkiye’s faced numerous global and domestic shocks, which led to fluctuations in economic growth rates.The economic growth performance was directly affected by several major shocks during this period: the outbreak of the COVID-19 pandemic in 2020 and its far-reaching economic repercussions; the surge in inflation driven by rising energy and agricultural prices following the onset of the Russia–Ukraine war in 2022; and the devastating earthquake centred in Kahramanmaraş in 2023.
When we analyse economic growth at the sectoral level, we observe a declining share of both the agriculture and industry sectors in GDP, while the services sector has emerged as the primary driver of growth. The contribution of agriculture to economic performance declined during the pandemic and was further reduced by the impact of the 2023 earthquake. The industry sector experienced a notable recovery in 2021, whereas the services sector expanded rapidly in the post-pandemic period, despite the continuation of quarantine measures.Beginning in 2022, Türkiye’s economic growth was increasingly constrained by a confluence of external shocks—most notably, the sharp rise in global energy prices and agricultural prices resulting from the Russia–Ukraine conflict, a decline in external demand, and persistently high inflation.In 2023, the devastation caused by the Kahramanmaraş-centred earthquake significantly disrupted agricultural and industrial activity in the affected regions, thereby placing additional constraints on economic growth.
In this context, the study examines the composition of Türkiye’s economic growth from both structural and quantitative perspectives and offers an in-depth analysis of its underlying framework.