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.
The official opening ceremony of the 'Azerbaijan' residential complex, constructed by Azerbaijan in the Turkish city of Kahramanmaraş, was held on Thursday and was attended by President of the Republic of Azerbaijan Ilham Aliyev and President of the Republic of Türkiye Recep Tayyip Erdoğan.
Iran's foreign minister is expected in Istanbul on Saturday for a key Organisation of Islamic Cooperation (OIC) council meeting as regional tensions rise over Israel's strikes on Iranian nuclear sites.
The European Bank for Reconstruction and Development (EBRD) has launched its Youth in Business programme in Türkiye, building on its success in 12 other countries. The initiative aims to mobilise up to €250 million in financing to support young entrepreneurs under 35.
Security measures along Türkiye' border with Iran have strengthened. Türkiye’s Minister of National Defense Yaşar Güler said it's due to recent developments at between Iran and Israel.
The Armenian Prime Minister is set to visit Türkiye on Friday.
Azerbaijan and Poland discussed closer cooperation in digital tax reforms and innovation during a high-level meeting held on the sidelines of the IOTA General Assembly in Baku.
A 32°C heatwave expected to grip England has been made a 100 times more likely by human-caused climate change, according to a rapid scientific analysis released Thursday.
Kazakhstan’s flagship carrier, Air Astana, will temporarily suspend its flights from Atyrau to Dubai starting June 28, due to a significant increase in flight duration.
Several EU Member States have activated the EU Civil Protection Mechanism (UCPM) to assist the departure of citizens due to the airspace closures in the Middle East. Slovakia, Lithuania, Greece, Poland and Portugal have requested UCPM support to assist the departure of their nationals.
A high-speed tram derailment in central Gothenburg, Sweden, has left at least eight people injured late on Thursday (19 June), after the vehicle slammed into a snack bar on Avenyn Avenue.
Iranian missiles struck multiple locations across Israel and neighbouring regions early Friday morning, including a Microsoft office complex, according to emergency responders and local media reports.
Peace is no longer a dream. It is a discussion. On the streets of Baku and Yerevan, it is also a question, of trust, of foreign interests, and of who truly wants it.
Israeli strikes have reportedly targeted areas near the residences of Iran’s Supreme Leader Ayatollah Ali Khamenei and President Masoud Pezeshkian, according to the New York Times, citing local witnesses.
The 2025 G7 Leaders’ Summit was held June 15–17 in Kananaskis, Alberta, under Canada’s presidency. Prime Minister Mark Carney framed the meeting around priorities of protecting communities, energy and climate security, the digital transition, and future partnerships.
Start your day informed with AnewZ Morning Brief: here are the top news stories for June 17th, covering the latest developments you need to know.
Germany’s producer prices dropped 1.2% year-on-year in May, in line with market expectations, largely due to falling energy prices, official data showed Friday.
The World Bank is pushing for “radical” debt transparency from developing countries to prevent future financial crises, warning that hidden debts are fueling instability.
European stock markets ended the day in negative territory following interest rate decisions by major central banks, including the U.S. Federal Reserve (Fed) and the Bank of England (BoE).
South Korea’s new administration proposed $14.7 billion in additional spending on Thursday to boost weak domestic demand, as President Lee Jae Myung pushes economic recovery as his top priority.
If the European Central Bank adjusts interest rates in the next six months, the move would likely be a cut, ECB policymaker Francois Villeroy de Galhau said on Thursday.
Azerbaijan and Poland discussed closer cooperation in digital tax reforms and innovation during a high-level meeting held on the sidelines of the IOTA General Assembly in Baku.
A 32°C heatwave expected to grip England has been made a 100 times more likely by human-caused climate change, according to a rapid scientific analysis released Thursday.
Kazakhstan’s flagship carrier, Air Astana, will temporarily suspend its flights from Atyrau to Dubai starting June 28, due to a significant increase in flight duration.
Several EU Member States have activated the EU Civil Protection Mechanism (UCPM) to assist the departure of citizens due to the airspace closures in the Middle East. Slovakia, Lithuania, Greece, Poland and Portugal have requested UCPM support to assist the departure of their nationals.
A high-speed tram derailment in central Gothenburg, Sweden, has left at least eight people injured late on Thursday (19 June), after the vehicle slammed into a snack bar on Avenyn Avenue.
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