Türkiye's economy grew 3.8% year-on-year in the second quarter of 2023, better than the market forecast, according to data released by the country's statistical authority.

"We started to see the positive effects of the policies we implemented. We will continue to take the necessary steps to ensure the lasting effects of these impacts and to maintain stability" Türkiye's Treasury and Finance Minister Mehmet Simsek said.

Economists had expected Türkiye's economy would grow 3.5% on an annual basis in the second quarter.

The figure followed a downwardly-revised 3.9% annual growth in the first quarter of 2023.

On a quarterly basis, the Turkish economy grew 3.5% in the three months to June, shifting from a 0.1% contraction in the previous period.

Value added increased the most among the services – wholesale and retail trade, transport, storage, accommodation, and food service activities – constituting a gross domestic product of 6.4% year-on-year in April-June.

The figures increased by 6.2% in the construction sector and 1.2% in agriculture, but decreased by 2.6% in industry during the same period.

Imports of goods and services soared 20.3% in the three-month period compared to last year, while exports of goods and services plunged 9%.

The final consumption expenditures of resident households hiked 15.6% in the second quarter of 2023.

Government final consumption expenditure grew by 5.3% in the same period.

TurkStat also said that Türkiye's annual GDP growth rate for 2022 was revised s lightly downwards to 5.5%.