Turkish Construction Sector Achieves Highest Growth in 26 Quarters

The construction sector, one of Turkiye’s leading industries, achieved an annual growth rate of 11.1% in the first quarter of this year, marking its best growth performance in the last 26 quarters. According to data from the Turkish Statistical Institute, the country’s economy grew by 5.7% in the first quarter of this year (January-March period).

A closer look at the distribution of growth among economic activities highlights the remarkable performance of the construction sector. Contributing positively to the country’s economy for the past 6 quarters, the construction sector took the lead in the first quarter of this year with a growth rate of 11.1%. This performance is recorded as the highest growth rate in the last 26 quarters. The construction sector had also experienced a growth rate of 19.4% in the third quarter of 2017.

“Support Needed for Urban Transformation Activities”

Ali Adıgüzel, President of the Public Contractors and Businessmen Association, stated to AA news agency that the main factor behind the sector’s growth rate is the need for housing arising from earthquakes centered in Kahramanmaraş.

Adıgüzel said, “The housing, road, and all kinds of infrastructure activities initiated by the government to address earthquake-related damage have had a significant impact on the growth of the construction sector.”

Adıgüzel expressed that Turkiye’s economy is accustomed to growing with the construction sector and they expect the growth to continue due to construction activities in disaster areas.

He emphasized the importance of supporting housing construction by the private sector and urban transformation activities for the continuity of growth, pointing out the significance of lowering inflation and interest rates in this regard.

Adıgüzel also noted that there was a 108.4% increase in labor payments in the first quarter of this year, attributing this to the increase in construction activities in the region following the earthquake, resulting in a shortage of labor and a significant rise in labor costs.

Source: Trthaber / Prepared by Irem Yildiz

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