The Turkish economy expanded 2.5% year-on-year in Q1 2026, easing from 3.4% in Q4 and below expectations for 2.7% growth. This marked the softest expansion in a year, as growth slowed in household consumption (4.8% vs 5.2%) and fixed investment (3.0% vs 5.4%). Net trade also weighed on growth as exports plunged 12.7%, while imports declined at a slower pace of 2.0%. In contrast, government spending recovered, rising 2.1% after a 0.9% contraction. On the production side, manufacturing contracted 1.4% after growing 0.9% previously, while growth slowed in construction (3.2% vs 8.6%), trade and transport (3.7% vs 4.2%), and financial and insurance activities (3.5% vs 4.1%). Meanwhile, agriculture, forestry and fishing rebounded 4.6% after a 7.2% decline, while information and communication accelerated to 9.5% from 8.9%. On a quarterly basis, GDP grew 0.1%, the weakest pace since a contraction in Q2 2024 and down from 0.4% previously.