VKF_FRAE_2017

PART I: INTRODUCTION 36 VakıfBank Annual Report 2017 In the third quarter of 2017, the Turkish economy exhibited its strongest growth performance since the third quarter of 2001, by growing 11.1% year-over-year. THE WORLD AND TURKEY IN 2017 THE TURKISH ECONOMY »» THE TURKISH ECONOMY GREW BY 11.1% IN THE THIRD QUARTER OF 2017. Gross domestic product (GDP) grew by 5.3% and 5.4% in the first two quarters of the year 2017 as a result of effective fiscal policies, and the surge in investments as a result of loans extended under the Credit Guarantee Fund (CGF). In the third quarter of 2017, the Turkish economy grew 11.1% year-over- year, in its strongest performance since the third quarter of 2001. This amounted to the highest growth rate of the last 6 years. In the third quarter of 2017, Gross Domestic Product reached TL 827 billion 230.1 million at current prices, in a 24.2% increase. Calendar-adjusted GDP increased by 9.6% year-on-year in the third quarter of 2017, while seasonally- and calendar-adjusted GDP grew by 1.2% over the previous quarter. The highest contributions to GDP growth came from net exports in the first quarter of the year, and from investment spending in the second quarter. In the third quarter of the year, consumer spending grew 11.7% on an annual basis, and contributed 7 points to growth on top of its 1.9 point contribution in the second quarter. The impact of loans extended under the Credit Guarantee Fund (CGF) continued in the third quarter, resulting in a 12.4% increase in investment spending in the third quarter. An analysis of growth figures by sectors reveals that the sector that contributed most to growth in the third quarter of 2017 was the service sector (5.9 points), as was the case in the first two quarters. Although the agricultural sector was the sector making the smallest contribution to grow in the third quarter, its contribution to growth was seen to increase due to seasonal effects, compared to the first two quarters. On the other hand, while the finance and insurance sectors suffered a contraction for the first time since the third quarter of 2012, this can largely be attributed to the increased costs imposed on the insurance sector by the unprecedented hailstorm in Istanbul of end-July. In the third quarter of 2017, Gross Domestic Product (GDP) reached TL 827 billion at current prices. GROWTH RATE (Y-Y, %) Source: TSI 2009.Q2 2010.Q1 2010.Q4 2011.Q3 2012.Q2 2013.Q1 2013.Q4 2014.Q3 2015.Q2 2016.Q1 2016.Q4 2017.Q3 11.1 -5 5 -0 -10 15 10