Surge in the Turkish Construction Sector
The Turkish construction sector has remarkably emerged as the fastest-growing industry in the third quarter of the year. According to Erdal Eren, the President of the Turkish Contractors Association (TMB), the construction sector experienced a significant 8.1% growth, surpassing the overall country’s economic growth of 5.9% during the same period. This achievement highlights the sector’s resilience and dynamic nature in challenging global economic conditions.
Construction Sector Overcoming Global and Geopolitical Challenges
In his statement, Eren emphasized how the Turkish construction sector triumphed despite global economic issues and geopolitical developments. The sector’s growth is particularly notable given the widespread challenges faced globally in 2023.
Key Drivers of Growth in Construction
The rebuilding efforts in earthquake-affected areas have been a major contributor to the construction sector’s growth. Eren highlighted that the reconstruction process in these regions played a crucial role in making construction the top-growing sector in the third quarter. He also praised the sector’s vital role in generating employment and creating demand for over 200 sub-sectors, thus acting as an economic locomotive.
Challenges and Requests for Legislative Support
Despite the encouraging growth figures, Eren pointed out ongoing challenges in the sector, such as unresolved issues related to price differences, extension of time, and liquidation demands for contractors working on public projects. He urged for an expansion in the scope of the price difference regulation currently under discussion in the Turkish Grand National Assembly, especially to include ongoing projects in earthquake regions, and to address the high cost increases this year.
Future Prospects and Monitoring Developments
The outlook for the Turkish construction sector remains optimistic, with Eren expressing confidence in constructive solutions to the sector’s proposals. He reaffirmed his commitment to monitoring developments closely and continuing to voice the sector’s concerns and needs.
For more in-depth analysis on the Turkish construction growth and other economic updates, visit Prestij Consulting’s blog. If you’re interested in the construction industry or seeking expert advice, please reach out through our contact page.
