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ANKARA, Sept. 9 (Xinhua) -- Turkey's gross domestic product (GDP) expanded by 3.1 percent in the second quarter of 2016 year on year, slower than the first quarter, according to a statement by the Turkish Statistical Institute on Friday.


The Q2 GDP totalled 33.06 billion lira (11.4 U.S. billion dollars), up 3.1 percent from the previous year but lower than the previous forecast of around 3.4 percent.


The statement showed that the Q1 GDP was downgraded 0.1 percentage point to 4.7 percent from the previously announced 4.8 percent.


Following the release of Q1 figures, many economists agreed that the following quarterly growth rates will stand at around 3 percent, taking into account possible fluctuations in the overall framework, Turkish Daily Sabah added.


The institute attributed the slowdown to the decline in industrial investments and foreign demand, but stressed the economy has maintained its momentum according to constant prices, which excludes the effect of inflation.


Deputy Prime Minister Mehmet Simsek said in a written statement on Friday that economic growth maintained a level of 3.9 percent in the first half of 2016, despite the ongoing geopolitical tensions and weakening global economy.


He said Turkish economy has managed to achieve domestic demand-intensive growth since the last quarter of 2014 due to a low global trade volume and low demand from commercial partners.


Due to weak machinery and equipment investment, private sector made a negative contribution in the second quarter despite the positive performance of construction investment.


Turkish government announced in January the Turkey's Medium-Term Economic Plan (MEP), in which the government predicts that the year-end GDP will increase by 4.5 percent in 2016, and by 5 percent for 2017 and 2018, respectively.

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