The European Bank for Reconstruction and Development (EBRD) predicted that Türkiye’s economy will expand 3.1% this year and 3.5% in 2026.
The bank published its Regional Economic Outlook report for countries where it has operations.
The EBRD also updated its regional growth projection for 2025 by 0.1 percentage points to 3.1%, in light of sustained global geopolitical tensions, increased Chinese competition for export market shares, and limited fiscal space due to ongoing pressures.
Economic growth in EBRD countries is expected to increase to 3.3% in 2026.
For Türkiye, the bank upgraded its growth projection for 2025 by 0.3 points to 3.1%. The higher revision is due to eased tensions in Syria and the Caucasus, enhanced cooperation with the European Union, and improvements in Türkiye’s construction, logistics, and defense industries, despite variable risk perceptions and fatter global financing conditions posing big challenges.
Türkiye’s 2026 growth projection was also upgraded by 0.7 points to 3.5%.
The total investment of EBRD in the country is in excess of 22.4 billion euros ($26.3 billion), and its portfolio in the country stands at approximately €8 billion.
