European Bank for Reconstruction and Development Revises Turkey's Growth Expectation

The European Bank for Reconstruction and Development released its Regional Economic Prospects report, announcing that it has lowered Turkey's economic growth forecast for 2026 from 3.5 percent to 3 percent.

Downward Revision in Growth Forecasts

The European Bank for Reconstruction and Development shared its new Regional Economic Prospects report covering the countries where it operates with the public.

In the bank's report, the Turkish economy is expected to register a growth rate of 3 percent this year and 4 percent in 2027.

Main Drivers Behind the Lowered Forecast

It was stated that high inflation and weakening domestic demand amid tight financial conditions were influential in the downward revision made for the Turkish economy.

Additionally, the report emphasized that the ongoing impact of the war in the Middle East and pressures on cost competitiveness for exports also played a role.

Expectations for the Future Period

The report noted that achieving lasting peace in the Middle East, strengthening external demand, and maintaining monetary policy discipline could support investments.

The European Bank for Reconstruction and Development has over 25 billion euros of investments in Turkey, the vast majority of which are in the private sector.