The European Bank for Reconstruction and Development (EBRD) revised Turkey’s economic growth forecast for 2025 down to 2.8%, citing weaker domestic and external demand and tighter-than-expected monetary policy. This marked a reduction from its February 2025 estimate. Despite the downgrade, the Bank maintained its 2026 growth forecast for Turkey at 3.5%.

EBRD also highlighted improvements in Turkey’s external position, including a steady decline in the current account deficit and a rise in net exports. However, foreign direct investment remained relatively low at US$12.2 billion.