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.
Azerbaijan has unveiled plans to export renewable electricity to Türkiye through the Nakhchivan Autonomous Republic, with a projected capacity of up to 1 gigawatt.
Officials from Turkmenistan and the Republic of Türkiye held comprehensive consultations at the Ministry of Foreign Affairs of Turkmenistan today, reaffirming their commitment to deepening bilateral ties across political, diplomatic, economic, and cultural spheres.
Turkish President Recep Tayyip Erdogan and Armenian Prime Minister Nikol Pashinyan held a phone conversation today. During the call, PM Pashinyan extended his congratulations to President Erdogan on the occasion of Kurban Bayrami.
Türkiye’s Minister of Transport and Infrastructure, Abdulkadir Uraloğlu, has announced that Turkish low-cost carrier AJet will begin operating regular flights to Damascus later this month.
Iran and Türkiye are aiming to boost their bilateral trade to $30 billion annually through stronger cooperation in transport, customs, and infrastructure.
Meta and Russian search engine Yandex have been secretly tracking what Android users do on their web browsers—even when users are in private or incognito mode—according to experts from Radboud University and IMDEA Networks.
A major Japanese battery maker has stopped construction on a $1.6 billion plant in South Carolina, citing “policy and market uncertainty” tied to electric vehicles and global trade.
Germany’s new government has launched a major program aimed at boosting investment and helping Europe’s largest economy recover after two years of decline.
]The third annual AI Film Festival opened Thursday night in New York, offering a glimpse into what artificial intelligence can now do on the big screen.
A local dive team has solved a nearly 140-year-old maritime mystery by identifying the wreck of the SS Nantes off the coast of Devon.
As peace talks progress, voices from Yerevan, Tbilisi, and Baku reveal hopes, concerns, and expectations for a future shaped by trade, trust, and generational change in the South Caucasus.
A bridge collapse in the Vygonichsky district of Russia’s Bryansk region, near the Ukrainian border, caused a train derailment and a traffic accident early Sunday, killing at least seven people and leaving 30 injured, according to emergency services.
Ukraine’s Security Service (SBU) has confirmed it carried out a third targeted attack against the Crimean Bridge, also known as the Kerch Bridge, early Tuesday morning, marking a new escalation in the ongoing conflict with Russia.
A strong 6.3 magnitude earthquake shook Japan’s Hokkaido prefecture early Monday, causing no reported injuries or damage, and no tsunami warning was issued, officials confirmed.
Peace talks between Russia and Ukraine ended abruptly in Istanbul on Monday, lasting just over an hour amid mounting tensions following a major Ukrainian drone strike on Russian strategic bombers and renewed pressure from the U.S. for a breakthrough.
Germany’s new government has launched a major program aimed at boosting investment and helping Europe’s largest economy recover after two years of decline.
The European Central Bank has reduced its three key interest rates by 25 basis points, aligning with expectations and reflecting progress toward its inflation target.
Centrica, owner of British Gas, has agreed to a £20 billion deal with Norway’s Equinor to supply nearly 10% of the UK’s gas needs annually for the next decade, supporting energy security while paving the way for future hydrogen integration.
Tesla’s shares declined by about 14.2% on Thursday, reducing the company’s market value by roughly $152 billion, as Elon Musk and Donald Trump publicly exchanged criticisms on social media.
A U.S. appeals panel has rejected Apple’s request to pause a ruling that restricts the tech giant from charging commissions on in-app purchases made outside its payment system—delivering a major blow to the company in its long-running legal fight with Epic Games.
Meta and Russian search engine Yandex have been secretly tracking what Android users do on their web browsers—even when users are in private or incognito mode—according to experts from Radboud University and IMDEA Networks.
A major Japanese battery maker has stopped construction on a $1.6 billion plant in South Carolina, citing “policy and market uncertainty” tied to electric vehicles and global trade.
Germany’s new government has launched a major program aimed at boosting investment and helping Europe’s largest economy recover after two years of decline.
]The third annual AI Film Festival opened Thursday night in New York, offering a glimpse into what artificial intelligence can now do on the big screen.
A local dive team has solved a nearly 140-year-old maritime mystery by identifying the wreck of the SS Nantes off the coast of Devon.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment