The European Bank for Reconstruction and Development lowered its forecast for Turkey's economic growth in 2026 from 3.5% to 3.0% due to weak domestic demand, high inflation and a tight financial environment, according to a statement. Turkey's economic growth rate is expected to return to 4.0% in 2027. The Middle East conflict continues to put pressure on the economic outlook by driving up energy prices, affecting tourism revenues, and disrupting trade. Rising foreign exchange liabilities put corporate balance liabilities at risk of depreciation of the lira. The European Bank for Reconstruction and Development has invested more than 25 billion euros in Turkey, mainly in the private sector.

The European Bank for Reconstruction and Development lowered its forecast for Turkey's economic growth in 2026 from 3.5% to 3.0% due to weak domestic demand, high inflation and a tight financial environment, according to a statement. Turkey's economic growth rate is expected to return to 4.0% in 2027. The Middle East conflict continues to put pressure on the economic outlook by driving up energy prices, affecting tourism revenues, and disrupting trade. Rising foreign exchange liabilities put corporate balance liabilities at risk of depreciation of the lira. The European Bank for Reconstruction and Development has invested more than 25 billion euros in Turkey, mainly in the private sector.