The primary aim of this study is to examine the growth performance of the Turkish economy during the last 20 year period. One dimension of this study is to determine the potential growth rate of the Turkish economy and yet another dimension is to manifest the fundamental components from which the obtained growth has derived from. Taking account of the developments that have transpired in the economy during 2002-2007, the concentration has been on the sustainability of the rapid growth performance of the recent past. While the level and the development that has been displayed by the production capacity has been examined, the economy’s growth rate has been decoupled according to the sources carrying permanent and temporary characteristics. Thus; the contribution of the workforce, capital accumulation and the total factor productivity to the growth performance achieved has been put forth and in this way, making a contribution to the formation of more robust groundwork for policies targeting sustainable high rate growth have been aimed. The study additionally includes estimations on the output (production) gap that is important in terms of the establishment of price stability and reflects the difference between the economy’s potential production level and the realised production level.