European Bank for Reconstruction and Development Updates Turkey's 2026 Growth Forecast
The European Bank for Reconstruction and Development has revised Turkey's 2026 economic growth expectation down to 3 percent, while projecting a 4 percent level for 2027.
The European Bank for Reconstruction and Development released its Regional Economic Prospects report, sharing updated growth forecasts for Turkey and other countries where it operates.
Regional Economic Prospects Report Published
The European Bank for Reconstruction and Development officially shared the Regional Economic Prospects report covering the countries where it operates with the public.
Growth Expectations for Operating Countries
According to the report, average economic growth in the countries where the bank operates is expected to be 2.5 percent this year and 4 percent in 2027.
The bank revised its regional growth forecast downward by 0.6 percentage points for this year and by 0.4 percentage points for 2027 compared to its June projections.
New Forecasts for the Turkish Economy
The European Bank for Reconstruction and Development projected that the Turkish economy will grow by 3 percent in 2026 and by 4 percent in 2027.
Revision Made According to June Projections
The bank's previously announced 2026 growth forecast for Turkey in June stood at 3.5 percent.
With this update, Turkey's 2026 economic growth expectation has been revised down by 0.5 percentage points.
Reasons for the Downward Revision
High inflation, tight financial conditions, and the impacts of the war in the Middle East played a role in the downward revision of the growth forecast in the report.
The report also emphasized that pressures on cost competitiveness for exports were influential during the revision process.
Other Details Included in the Report
The comprehensive report published also included various calculations regarding pensions and inflation expectations.