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.
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The European Bank for Reconstruction and Development (EBRD) has provided a €500 million loan (almost $590 million) to the national gas company Naftogaz (NAK) for emergency gas purchases for Ukraine.
The European Bank for Reconstruction and Development (EBRD) has announced a lending the equivalent of $7 million to Saloğlu, Azerbaijan’s leading furniture producer and retailer, in local currency to help boost its competitiveness.
EBRD stated that Ukraine urgently needs new generation capacity after Russian attacks severely damaged its power sector, creating a significant shortfall in electricity generation. In response, the bank announced the launch of the Ukraine Renewable Energy Risk Mitigation Mechanism.
Kazakhstan and The European Bank for Reconstruction and Development (EBRD) will continue to work together to support transport infrastructure, green energy, small and medium-sized businesses, agriculture, and information technology in the country.
U.S. President Donald Trump warned Iran to expect further strikes on Saturday (7 March). In a post on social media, he said Iran would be 'hit very hard'. His comments came a week into the conflict with Iran, which has spread across the Middle East.
Lebanon's Hezbollah warned Israeli residents to evacuate towns within 5 km (3.11 miles) of the border between the countries in a message posted on its Telegram channel in Hebrew early on Friday.
The Azerbaijani State Security Service has said it has stopped Iran committing terror attacks against four targets in the country: Baku-Tbilisi-Ceyhan pipeline, the Israeli Embassy in Azerbaijan, a leader of the Mountain Jews religious community and the "Ashkenazi" synagogue.
The Israeli military says it has destroyed an underground bunker beneath Iran’s leadership complex in Tehran that it claims was built for former supreme leader Ali Khamenei.
Global financial markets remained on edge on Friday as the escalating war involving the United States, Israel and Iran continued to rattle investors, fuelling volatility in stocks and sending energy prices sharply higher.
Global financial markets remained on edge on Friday as the escalating war involving the United States, Israel and Iran continued to rattle investors, fuelling volatility in stocks and sending energy prices sharply higher.
China’s top leadership has unveiled a new push to turn advanced technologies into large-scale industrial priorities as part of the country’s upcoming 15th Five-Year Plan, which will guide economic and social development from 2026 to 2030.
The European Commission sees no immediate impact on the European Union's security of oil supply from the escalating conflict in the Middle East, it said in an email to EU governments, seen by Reuters on Monday (2 March).
Paramount Skydance emerged as the winner in a months-long battle to acquire Warner Bros Discovery after streaming giant Netflix on Thursday refused to raise its bid for the storied Hollywood studio.
Global debt surged to a record $348.3 trillion at the end of 2025, after nearly $29 trillion was added over the year, marking the fastest annual increase since the pandemic, according to the Institute of International Finance (IIF) report released on Wednesday.
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