Economy
Construction powers Türkiye’s 2025 growth, momentum seen continuing
The construction sector made the largest contribution to Türkiye’s economic growth in 2025 thanks to housing production, urban transformation projects and infrastructure investments, sector representatives said, adding that they expect this momentum to continue this year.
The Turkish economy grew by 3.6% last year, according to official data, being supported by the economic program implemented and maintaining expansion momentum despite tighter monetary conditions.
Like this, Türkiye ranked among the three fastest-growing economies among member countries of the Organisation for Economic Co‑operation and Development (OECD).
When the activities forming gross domestic product (GDP) are examined, the activity in the construction sector grew by 10.8% in 2025 compared with the previous year. It was the sector with the highest growth last year.
Sector representatives suggested the data once again reveals the increasing momentum in construction, noting that the surge in housing production, urban transformation and infrastructure investments has also made a significant contribution to the national economy.
Neşecan Çekici, head of the Real Estate Investors Association of Türkiye (GYODER), recalled in a statement that construction was among the sectors contributing most to economic growth.
“This development clearly shows that the sector has once again become one of the main drivers of growth,” she told Anadolu Agency (AA), according to remarks published on Sunday.
“Construction has a multiplier effect that activates a very broad ecosystem simultaneously, including cement, iron and steel, ceramics, glass, paint, furniture, logistics, architecture and engineering, finance, insurance and real estate services,” Çekici continued.
“For this reason, the acceleration in construction spreads across many areas of the economy, from industry to services, and from employment to tax revenues,” she suggested.
Çekici also noted that the number of salaried employees in the construction sector rose from 1.8 million to 2 million over the past year.
At the same time, she pointed out that reconstruction efforts in earthquake-hit regions, urban transformation projects and infrastructure investments have helped keep production capacity and supply chains active through public-private cooperation.
“However, for sustainability, not only increased production but also access to financing, cost stability and predictable licensing and planning processes must be strengthened simultaneously,” she said.
Growth expected to continue
Furthermore, Çekici said the sector’s contribution to growth is expected to continue this year as well, although the continuation of momentum will depend on financial conditions. She added that in 2026, housing projects that are high-quality, located in the right areas and aligned with real demand will stand out.
She also pointed to several factors that would determine the sector’s trajectory this year, citing them as including improved access to credit and financing, easing volatility in input costs and labor costs, and ensuring that urban transformation expands with a focus on “quality and resilience.”
Access to financing
Ziya Yılmaz, chairperson of the board of the Housing Developers and Investors Association (KONUTDER), similarly said that the construction sector’s 10.8% growth last year once again demonstrated its multiplier effect and strategic importance.
He emphasized that the comprehensive reconstruction process in earthquake-affected regions is being carried out on a scale that could set a global example.
Yılmaz also said that the construction sector does not only mean housing production but that it directly affects around 250 sub-sectors, making it one of the sectors with the broadest impact on employment, production and tax revenues.
“Our sector continues to make a strong contribution to the economy through both reconstruction in earthquake-affected areas and production activity across the country. However, in order for this contribution to turn into a sustainable locomotive effect, improving access to financing and supporting production continuity are of great importance,” he furthered.
Yılmaz added that whether last year’s momentum can be sustained in 2026 will depend not only on domestic demand dynamics but also on global economic developments and geopolitical developments in the surrounding region.
He said Türkiye retains its potential thanks to its strong production capacity and dynamic housing demand.
Noting that the increase in building permits last year needs to translate into accelerated production, he said land and financing policies should be addressed together.
Safest haven in the region
Engin Keçeli, chairperson of the Association of Construction Contractors and Real Estate Developers (INDER), said they were proud that the construction sector made the largest contribution to growth in 2025.
“This year will be much better. We never wish for instability in our region, but the whole world has seen that Türkiye is the safest haven in this region,” he said.
“The value of our country is being recognized again. For this reason, we believe 2026 will be better than 2025,” he added.
Pointing out that infrastructure investments in Türkiye have always continued, he went on to stay they have managed to recently overcome the slowdown experienced in housing production in previous years.
“The increase in new building permits this year indicates that housing production will continue. Because demand is high, we are obliged to increase supply. This will automatically bring growth,” he said.
Mustafa Ekiz, head of the Real Estate and Construction Platform, said that for Türkiye’s economic growth to continue this year, sectors outside construction must also come into play.
He noted that this would improve the quality of economic growth while supporting employment and productivity.
Ekiz said that in the short-term, housing production and public and private sector investments could support growth, but in the long-term the country needs to accelerate transformation in sustainability, technology, exports and high value-added production.
The fieldwork for the most comprehensive general agricultural census in Türkiye in history of the republic, conducted in cooperation between the Turkish Statistical Institute (TurkStat) and the Ministry of Agriculture and Forestry, has been largely completed, according to a report on Sunday.
The census, which began in July last year to collect data that plays a crucial role in shaping agricultural policies, has reached its final stage, according to information obtained by Anadolu Agency (AA) from the statistics office.
Accordingly, the fieldwork for the most comprehensive general agricultural census has been mostly completed.
Surveys were conducted with 96% of the approximately 4.2 million producers and farmers targeted in the study. The remaining 4% largely consists of individuals who could not be reached or who passed away.
The census collected detailed information on many structural aspects of agricultural enterprises, including legal status, management, land use, ownership type, irrigation status, livestock holdings, use of tools and machinery, and other productive activities, the report by AA said.
The work of the census offices, which played an active role in the data collection process carried out since July of last year, ended on Jan. 30. For the few remaining surveys, data collection continues by phone, conducted by about 300 part-time project staff working in TurkStat’s regional directorates.
Moreover, in the first half of this year, the analysis and quality control of the data collected from the field are planned to be conducted, and in the second half, the main results are planned to be shared with the public.
Additionally, in April and May, three separate thematic studies will be carried out using sampling as part of the “General Agricultural Census Project.”
The results of research on the themes of “agricultural labor,” “use of technology in agriculture,” and “animal shelters, fertilizer, and soil management” are expected to be published in 2027.
The top U.S. and Chinese officials began their economic and trade talks in Paris on Sunday, Chinese official news agency Xinhua reported.
The meetings, led by U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, are expected to pave the way for U.S. President Donald Trump’s state visit to Beijing to meet Chinese leader Xi Jinping in about two weeks.
The White House has said that Trump will travel to China from March 31 to April 2, although Beijing has not officially confirmed it.
Bessent said on Thursday that his team will continue to deliver results that put America’s farmers, workers and businesses first. China’s commerce ministry said Friday the two sides are set to discuss “trade and economic issues of mutual concern.”
Trump’s visit to China will be the first for a U.S. president since he went in his first term in 2017. It will come five months after the two leaders met in the South Korean city of Busan and agreed to a one-year truce in a trade war that temporarily saw tit-for-tat tariffs soar to triple digits before the two sides climbed down.
Still, trade remains a source of tensions. The Commerce Ministry on Friday hit back against the Trump administration’s new trade investigation into 16 trading partners, including China. The investigation, which came after a Supreme Court ruling struck down Trump’s sweeping global tariffs that were imposed last year, could pave the way for new tariffs.
Another issue that could be discussed is the Iran war, especially when global anxiety is soaring over oil prices and supplies. Trump said Saturday that he hopes China, France, Japan, South Korea, the United Kingdom and others will send warships to keep the Strait of Hormuz “open and safe.”
Before Sunday’s talks, Gary Ng, a senior economist at French bank Natixis and a research fellow at the Central European Institute of Asian Studies, said the Paris meeting is likely the most important bilateral one before the Xi-Trump summit.
The key issue is “whether China and the U.S. can agree on what is agreed and manage disagreement. Iran is a new factor, but Beijing is more concerned about the flip-flopping of U.S. policies,” he said.
Last week, Chinese Foreign Minister Wang Yi said it would be a “big year” for China-U.S. relations. While he did not confirm the state visit, Wang said that “the agenda of high-level exchange is already on the table.”
Bessent and the Chinese vice premier have led trade negotiations between the countries since last year, having met in Geneva, London, Stockholm, Madrid and Kuala Lumpur, Malaysia.
Iran may allow a restricted number of oil tankers to pass through the Strait of Hormuz if shipments are traded in Chinese yuan, a senior Iranian official told CNN, according to a report Friday.
The official said the potential move is part of Tehran’s plan to manage the flow of oil tankers through the strategic waterway.
Global oil is predominantly traded in U.S. dollars, except for sanctioned Russian oil, which is priced in rubles or the yuan, said CNN, adding that China has sought for years to expand the use of yuan in oil transactions, but the dollar remains the world’s primary reserve currency.
Concerns about disruptions in the strait, a critical route for the world’s energy supply, have pushed oil prices to their highest since July 2022, following the start of the Russian-Ukrainian conflict that began earlier that year, it said.
The Strait of Hormuz carries about 20 million barrels of oil a day and roughly 20% of the global liquefied natural gas trade.
The U.N. warned on Friday that restrictions on shipping through the strait could have a “massive impact” on humanitarian operations in the region.
Tehran has effectively closed the Strait of Hormuz since March 1, following Israel and the U.S. launching joint attacks against Iran on Feb. 28, which have so far killed around 1,300 people, including then-Supreme Leader Ayatollah Ali Khamenei. Hostilities have since escalated.
Panama Canal Administrator Ricaurte Vásquez said Thursday that the conflict in the Middle East and rising fuel costs could ultimately benefit the interoceanic waterway as global shippers adjust routes.
In an interview with The Associated Press (AP), Vásquez said that higher energy, fuel and navigation costs could make the Panama Canal a more attractive option for commercial traffic.
“When costs increase, in general when the price of marine fuel rises, the Panama Canal becomes a more attractive route,” Vásquez said.
Oil prices have risen amid the war in the Middle East, which has led to the temporary closure of the Strait of Hormuz by Iran in response to U.S. and Israeli attacks. About one-fifth of the world’s oil passes through the waterway at the mouth of the Persian Gulf.
If higher energy costs persist, routing cargo through Panama can cut voyages by between three and 15 days, depending on the route, while reducing fuel consumption, he said.
Vásquez said higher fuel costs are expected to affect container ships, bulk carriers and tankers transporting liquefied natural gas. If Middle Eastern supplies are disrupted, shipments may be replaced by other sources, including the United States, which could redirect some LNG cargo from Europe to Asia via Panama.
Gerardo Bósquez, an executive with the Panama Maritime Chamber, said a prolonged conflict could reshape global trade routes, with gas transport among the segments likely to benefit.
Vásquez cautioned that any changes will not be immediate and will depend on how long cargo operators expect the conflict and instability in the Gulf last.
Türkiye’s exports to Spain rose 4.1% year-on-year in the first two months of 2026, reaching $1.6 billion and marking the highest January-February performance on record.
Growing trade between the two countries comes at a time when uncertainty is rising in global commerce, partly driven by protectionist steps taken by the United States.
U.S. President Donald Trump’s country-specific tariff rates were ruled unlawful by the Supreme Court, prompting Washington to pursue alternative measures.
Trump later signed a decision under the Trade Act of 1974 introducing a 10% global tariff on imports from all countries. The U.S. president subsequently announced plans to increase the rate to 15%.
Amid these developments, Türkiye’s trade ties with nearby countries have drawn attention, with improving relations between Ankara and Madrid also reflected in stronger bilateral commerce.
According to data from the Turkish Exporters Assembly (TIM), Türkiye’s exports to Spain increased to $1.604 billion in January-February, up from $1.540 billion in the same period last year.
Spain ranked as Türkiye’s fifth-largest export market during the period, accounting for about 4% of the country’s total exports.
By sector, the automotive industry led exports to Spain with $566.7 million.
It was followed by ready-to-wear and apparel at $257.3 million, chemicals and chemical products at $208.9 million, electrical and electronics at $96.1 million, and iron and non-ferrous metals at $93.5 million.
The largest increases in export value were recorded in iron and non-ferrous metals with $29.4 million, followed by automotive with $25.4 million, ready-to-wear and apparel with $14.1 million, electrical and electronics with $8.8 million, and chemicals and chemical products with $6 million.
Türkiye’s current account balance logged a net deficit of $6.8 billion (TL 299.98 billion) in January, according to the official data released by the Central Bank of the Republic of Türkiye (CBRT) on Thursday.
The current account balance excluding gold and energy indicated a net deficit of $1.23 billion, the bank added.
Goods recorded a deficit of $6.98 billion while services saw a net surplus of $2.6 billion in January.
According to annualized data, the current account deficit recorded as $32.9 billion in January, while the goods deficit was at $71.2 billion, the CBRT also said.
Commenting on the data, Türkiye’s finance chief suggested the current account deficit in 2026 may exceed the government’s projections due to rising energy prices amid geopolitical tensions.
“We assess that this increase will be manageable, thanks to our strengthening macroeconomic fundamentals,” Treasury and Finance Minister Mehmet Şimşek said in a statement on X.
-
Daily Agenda2 days agoBREAKING NEWS | Iran message from President Erdoğan: We keep our country away from the fire pit
-
Daily Agenda2 days agoKürşad Zorlu: “We are running and working to bring the Turkish states together”
-
Daily Agenda2 days agoTanju Özcan’s “scholarship” lie has been debunked! He distributed 11 million, evaporated 100 million!
-
Politics3 days agoCanada’s foreign minister to visit Türkiye for talks on Iran war
-
Sports2 days agoAlcaraz sets Medvedev semis at Indian Wells, Svitolina stuns Swiatek
-
Politics2 days agoTürkiye warns against efforts to incite civil war in Iran
-
Politics2 days agoTürkiye’s minister leaves UN session during Israeli minister’s remarks
-
Daily Agenda2 days ago3.1 million more Istanbul residents will have access to the rail system network