New IMF report on Turkey's economy: Growth and inflation forecasts changed

The International Monetary Fund has released its October 2026 Regional Economic Outlook for Europe report, sharing updated growth and inflation expectations for the Turkish economy with the public.

Turkey's 2026 growth expectation revised

The International Monetary Fund projects that the Turkish economy will grow by 2.7 percent in 2026, a downward revision of 0.7 percentage points compared to its April 2026 forecasts.

Furthermore, the fund estimates Turkey's growth rate for the coming years at 3.6 percent in 2027 and 4 percent in 2028.

Inflation forecasts updated upward

Annual inflation in Turkey is expected to reach 31.2 percent in 2026, with expectations raised by 2.6 percentage points compared to the previous period.

Inflation rates are projected to be 26.5 percent in 2027 and 20.6 percent in 2028.

Growth and risks in European economies

The report emphasizes that the European economy continues to grow despite consecutive shocks, though the pace of growth remains low.

High energy prices, geopolitical risks, drought, and rising bond yields were cited as the main factors weighing on the regional economy.

Inflation and price increases across Europe

Annual inflation across Europe is projected to be 5.8 percent in 2026, 5.1 percent in 2027, and 4.1 percent in 2028.

It was stated that high prices for natural gas and refined petroleum products could keep inflation above targets for some time.