The European Bank for Reconstruction and Development (EBRD) expects Türkiye’s economy to grow by 2.8% in 2025, a downgrade from its February 2025 forecast, due to weaker domestic and external demand and a tighter-than-expected monetary policy.
The Bank expects the Turkish economy to grow by 3.5% in 2026, unchanged from its previous forecast.
The projections have been published today in the Bank’s Regional Economic Prospects report, which revised the EBRD’s aggregate 2025 growth forecast for its regions of operation down by 0.2% to 3%. The downgrade reflects heightened global policy uncertainty, weaker external demand, and both the direct and indirect effects of recently announced increases in import tariffs, the report reads.
"Türkiye’s downward revision reflects expectations of tighter domestic financial conditions as heightened uncertainty weighs on domestic demand, as well as weakening external demand due to increased uncertainty around global trade policy. Downside risks stem from still-high inflation and the impact of tighter-for-longer global financial conditions on Türkiye’s substantial short-term external financing needs," - EBRD says in statement.
The report notes recent improvements in the economy’s external position, with net exports rising and the current account deficit declining steadily in the 12 months to February 2025. However, inflows of foreign direct investment (FDI) remained relatively low at $12.2 billion (€10.8 billion).
The EBRD invested a record €2.6 billion in Türkiye in 2024, driven by the private sector’s appetite for green investments and the Bank’s continuing support for regions affected by the February 2023 earthquakes.
President Recep Tayyip Erdoğan met with NATO Secretary-General Mark Rutte in Ankara on Tuesday, just ahead of a pivotal two-day informal meeting of the alliance’s foreign ministers in Antalya, which will focus on European security and preparations for the upcoming NATO summit.
The Black Sea is transforming into a vital global hub for trade, energy, and logistics, and Türkiye is positioned at its center, according to Lazar Comanescu, Secretary General of the Black Sea Economic Cooperation Organization (BSEC).
On May 13, President of Azerbaijan Ilham Aliyev received Turkish Minister of National Defence Yaşar Güler in Baku, where both sides praised bilateral military cooperation and Türkiye’s recent success in combating terrorism.
Turkish Foreign Minister Hakan Fidan spoke with Russian Foreign Minister Sergey Lavrov on Monday evening to discuss ongoing efforts to establish peace between Russia and Ukraine, according to Turkish diplomatic sources.
President Recep Tayyip Erdogan stated that Türkiye is resolutely moving toward the goal of completely eliminating the terror problem from the national agenda, marking a significant milestone on the "Terror-Free Türkiye" path.
US President Donald Trump will briefly meet Syria’s new President Ahmad al-Sharaa during his visit to Saudi Arabia, in a move signalling potential policy shifts towards Damascus.
Recent U.S. sanctions on Iran are not constructive when it comes to negotiations, Iran's foreign ministry spokesperson Esmaeil Baghaei said on Tuesday, after the two countries held a fourth round of nuclear talks on Sunday in Oman.
Airline debuts new luxury cabins on Boeing 787-9s while addressing customer concerns over safety and delays at Newark Liberty Airport.
Sweden announced Tuesday it will propose that the European Union to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), aiming to create the world’s largest free trade area.
Albanian Prime Minister Edi Rama has secured a historic fourth term, with his Socialist Party winning the majority in Sunday’s election despite opposition allegations of irregularities.
India has fired a series of missiles into Pakistani-controlled territory, in what it has described as “Operation Sindoor”
For the first time in history, an American has been chosen to lead the Catholic Church, as Cardinal Robert Prevost is named pope.
A Rafale fighter jet operated by the Indian Air Force has reportedly been shot down for the first time in combat, according to sources cited by CNN, marking a significant and symbolic development in the ongoing escalation between India and Pakistan.
Pope Leo XIV made a surprise visit to the Basilica of Our Lady of Good Counsel in Genazzano. AnewZ covered the event, with journalist Maria Rodriguez Abalde on-site. She witnessed the occasion firsthand and documented key moments. More images and footage will be available soon.
Nissan Motor announced major cost-cutting measures, including the elimination of 11,000 additional jobs and reduced production, as the automaker faces declining profits and tough market conditions.
Vietnam and Azerbaijan plan to expand cooperation in oil exploration and production. Several energy sector agreements were signed during the recent state visit of To Lam, General Secretary of the Communist Party of Vietnam, to Azerbaijan.
Asian stock markets soared on Tuesday after the United States and China agreed to a 90-day halt in their trade war, easing recession fears and fuelling a region-wide buying spree.
In a notable shift from traditional Republican policy, President Donald Trump has proposed raising taxes on high-income earners to help finance broader tax cuts for middle- and working-class Americans.
Ukraine is exploring whether to replace the U.S. dollar with the euro as its reference currency, as Kyiv aligns more closely with the EU and global trade fractures deepen.
US President Donald Trump will briefly meet Syria’s new President Ahmad al-Sharaa during his visit to Saudi Arabia, in a move signalling potential policy shifts towards Damascus.
Recent U.S. sanctions on Iran are not constructive when it comes to negotiations, Iran's foreign ministry spokesperson Esmaeil Baghaei said on Tuesday, after the two countries held a fourth round of nuclear talks on Sunday in Oman.
Airline debuts new luxury cabins on Boeing 787-9s while addressing customer concerns over safety and delays at Newark Liberty Airport.
Sweden announced Tuesday it will propose that the European Union to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), aiming to create the world’s largest free trade area.
Albanian Prime Minister Edi Rama has secured a historic fourth term, with his Socialist Party winning the majority in Sunday’s election despite opposition allegations of irregularities.
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