Turkey’s per-capita income rises as capital’s share grows and labor’s shrinks

Turkey’s per-capita income increased on paper in 2025, but the distribution of economic gains shifted further toward capital, according to figures from the Turkish Statistical Institute.

GDP measured by the chained volume index rose 3.7% from the previous year. At current prices, GDP increased 41.6% to 63.24 trillion Turkish lira. Per-capita GDP reached 714,682 lira, equivalent to $18,103.

Manufacturing accounted for the largest share of GDP, at 15.6%, followed by wholesale and retail trade, vehicle sales and repairs at 12.9%, and real estate activities at 9.2%. Construction recorded the strongest growth, expanding 11%. Culture, arts, entertainment, recreation and sport grew 8.5%, while information and communication activities increased 7.9%.

The data also showed sharp differences between sectors. Agriculture, forestry and fishing contracted 8.5%, the biggest decline, while water supply, sewerage, waste management and remediation fell 5%.

Household consumption rose 4.2% and represented 54.4% of GDP at current values. Food and non-alcoholic drinks took the largest share of household spending, followed by housing and utilities, and transport. Government consumption increased 1%.

Exports of goods and services fell 0.6% in volume terms, while imports rose 4.6%. Labor compensation increased 40%, but its share of gross value added slipped from 36.9% in 2024 to 36.6% in 2025. The share of net operating surplus and mixed income rose from 43.3% to 44.3%, a shift the publication linked to worsening income inequality and weakening purchasing power. The statistics office’s first estimate also put second-quarter 2026 GDP growth at 2.3% year on year.