The International Monetary Fund lowered its growth forecast for the Turkish economy in 2026 to 2.9%, compared to its previous forecast of 3.4% in April, the second cut this year after its estimate stood at 4.2% in the January report.

The Fund said in its latest World Economic Outlook report released on Wednesday that it expects the Turkish economy to grow by 3.6% in 2027, compared to its previous forecast of 3.5% in April, according to Reuters.

This reduction comes after a previous cut in April, when it indicated that economic activity was weaker than expected, along with the impact of higher energy prices. As a result, its forecast for Turkish economic growth in 2026 is now about 1.3 percentage points lower compared to its January estimate.

In the same context, the OECD in June lowered its forecast for Turkish economic growth in 2026 to 3.1% from 3.3%, citing weak domestic demand, higher energy and commodity prices, and tighter financial conditions.

The European Bank for Reconstruction and Development also cut its Turkish economic growth forecast in June to 3.5% in 2026 from 4%, and to 4% in 2027 compared to its previous forecast of 4.5%.

Advertorial

Advertorial