BAKU, Azerbaijan, February 27. The European Bank for Reconstruction and Development (EBRD) expects Türkiye's economy to grow by 3% in 2025, maintaining its previous forecast from September 2024, Trend reports.
As such, the country's GDP growth is projected to rise to 3.5% in 2026.
These figures were published in the EBRD's latest Regional Economic Prospects report, which revised the overall 2025 growth outlook for EBRD regions downward to 3.2%, citing weak external demand, geopolitical risks, and slow reform progress.
For Türkiye, the report highlights the positive impact of tighter monetary and fiscal policies, which have helped reduce inflation and improve the country’s external position. Net exports have risen, and the current account deficit continues to decline. However, the report warns that potential risks, including persistent inflation, geopolitical uncertainties, and the real appreciation of the Turkish lira, could affect economic stability. Türkiye's high short-term external financing needs also make it sensitive to global financial conditions.
In 2024, the EBRD invested a record 2.6 billion euros in Türkiye, driven by demand for green investments and support for earthquake-affected regions. The bank's total investment in the country has surpassed 22 billion euros, with its current portfolio exceeding 8 billion euros.