EBRD maintains Türkiye’s growth forecast at 3% for 2025
European Bank for Reconstruction and Development logo. Dec. 12, 2018. (AFP Photo).
The European Bank for Reconstruction and Development (EBRD) maintained its economic growth forecast for Türkiye at 3% for 2025 without any changes. The bank has also projected a growth rate of 3.5% for 2026.
The report highlighted that weak reform momentum has played a significant role in the current slowdown.
Despite the global challenges, the EBRD has kept its growth estimate for Türkiye this year at 3%.
Their latest report emphasizes that tight monetary and fiscal policies have led to a significant reduction in inflation and improvements in the country’s external position.
Net exports have increased, and the current account deficit has shown a steady decline.
However, the EBRD has also cautioned that high inflation, geopolitical uncertainties, and the real appreciation of the Turkish Lira may pose downward risks to the economy.
The bank has advised against prematurely easing policy measures, as these factors could potentially undermine economic stability.
Looking ahead, the EBRD forecasts a 3.5% growth for Türkiye’s economy in 2026.
Rafik Selim, the EBRD’s Regional Chief Economist, stated that the slowdown would be most noticeable in 2025, but growth is expected to accelerate starting in 2026.
