The GDP, measured using the chain-linked volume index, grew by 4.0% compared to the same quarter of the previous year. Notably, the services sector exhibited a remarkable surge, with a 12.4% increase in the first quarter of 2023.

When analyzing the components of GDP, it was found that value added increased by 12.4% in services, 12.0% in professional and administrative support services, 11.2% in financial and insurance activities, 8.1% in information and communication, 7.8% in other service activities, 5.1% in construction, 3.6% in public administration, education, human health, and social work activities, and 1.4% in real estate activities. However, the industry sector experienced a decrease of 0.7%, while agriculture, forestry, and fishing declined by 3.8%.

In terms of seasonally and calendar adjusted figures, the GDP with the chain-linked volume index increased by 0.3% compared to the previous quarter. Moreover, the calendar-adjusted GDP with the chain-linked volume index rose by 3.8% compared to the same quarter of the previous year in the first quarter of 2023.

The GDP reached 4 trillion 631 billion 792 million Turkish Lira (TRY) at current prices in the first quarter of 2023. This represents an increase of 84.4% compared to the previous year. In terms of US dollars, the GDP amounted to 245 billion 464 million in the same period.

In terms of consumption expenditure, final consumption expenditure of resident households saw a significant 16.2% increase in the first quarter of 2023. Government final consumption expenditure also rose by 5.3%, while gross fixed capital formation increased by 4.9%, all compared to the same quarter of the previous year.

However, there was a divergence between imports and exports. Imports of goods and services experienced a notable increase of 14.4% in the first quarter of 2023 compared to the same quarter of the previous year, while exports of goods and services decreased by 0.3%.

Additionally, there was a substantial increase in compensation of employees, which grew by 126.1%, and net operating surplus/mixed income, which increased by 48.7% in the first quarter of 2023 compared to the same quarter of the previous year.

The share of compensation of employees in Gross Value Added (GVA) at current prices was 38.0% in the first quarter of 2023, marking a significant rise from the previous year's 31.1%. The share of net operating surplus/mixed income was 38.2%, compared to 47.6% in the same quarter of the previous year.

The increase in the share of compensation of employees in GVA can be attributed to the impact of regulations on severance payments introduced through the Social Insurance and General Health Insurance Law, which also covers regulations on pensioners' pensions. Excluding the impact of these regulations, the estimated share of compensation of employees in GVA stands at approximately 33.5%. (ILKHA)