The European Bank for Reconstruction and Development (EBRD) has raised its 2025 growth forecast for Turkey to 3.1%, up 0.3 percentage points from its May projection.
However, the agency warned that political tensions, volatile investor sentiment, and tighter global financing conditions continue to pose significant risks.
In its latest report covering economies from emerging Europe to Central Asia, the Middle East, and Africa, the EBRD maintained Turkey’s growth forecast at 3.5% for 2026.
The bank expects Turkey’s growth to remain in the 3.1%–3.5% range over 2025–2026, supported by easing financial conditions. “Political tensions, volatile risk sentiment, and tighter global financing conditions remain key risks, given Turkey’s substantial short-term external financing needs,” the report said.