OECD Upgrades Turkey's Inflation Forecasts for 2026 and 2027
In its updated report on the Turkish economy, the organization announced that it increased inflation expectations while revising growth rates downward.
The Organisation for Economic Co-operation and Development (OECD) has reassessed Turkey's inflation and economic growth projections. Compared to the June estimates, inflation expectations were raised, while downward revisions were made to growth rates.
Increase in Inflation Forecasts
The Organisation for Economic Co-operation and Development raised Turkey's headline inflation expectation for 2026 from the previous 28.4 percent to 31.5 percent. The inflation forecast for 2027 was also increased from 18.3 percent to 24.7 percent.
Growth Expectations Lowered
The organization lowered Turkey's economic growth forecast for 2026 from 3.1 percent to 2.7 percent. The growth forecast for 2027 was reduced from 3.8 percent to 3.6 percent.
The Inflation Combat Process
Emphasizing that Turkey has been battling high inflation in recent years, the OECD stated that annual inflation peaked at 85.5 percent in late 2022. It was noted that inflation, which exceeded 70 percent in May 2024, entered a downward trend thanks to the central bank's tightening policies.
Global Economic Outlook
The OECD revised global growth forecasts upward due to the impact of artificial intelligence-supported investments. While the Eurozone economy is projected to grow by 1.0 percent in 2026 and 2027, growth forecasts for the US were also disclosed.