Gross national product (GNP) grew by 8.1 per cent in 1995, according to the State Institute of Statistics (SIS). This reflects a quick recovery from the economic crisis in 1994, when GNP contracted by about 6 per cent, analysts say.

GNP in 1995 was TL 7,644 million million ($165,500 million). Gross domestic product (GDP) expanded by 7.7 per cent to TL 7,671 million million ($166,000 million).

Per capita income also rose considerably by 22.9 per cent at current prices and 6.2 per cent at constant prices to $2,685, according to the SIS.

Reflecting the recovery in domestic demand during the year, import taxes rose by 11.8 per cent. Likewise, industry registered the highest sectoral growth of 12.1 per cent in 1995, followed by trade with 11.6 per cent.

However, agriculture expanded by only 2.6 per cent in a poor year for important crops like wheat and sugar beet. Continued austerity curbs on development spending also partly explain a decline in the contribution of construction to 4.7 per cent, analysts say.

In its 1996 budget and economic programme, the new coalition government led by Prime Minister Mesut Yilmaz has targeted GNP growth of 4.5 per cent.

However, economists consider this to be overly ambitious (see Feature). The budget is under consideration by parliament’s budget & planning commission, and is expected to enter the floor of the house by mid-April.