Türkiye’s growth expected to ease in 2026, says World Bank

ISTANBUL

Tighter economic policies and higher prices for imported energy are projected to slow growth in Türkiye to 2.8 percent in 2026 from 3.7 percent in 2025, said the World Bank.

The growth will pick up to 3.8 percent in 2027 and 4.5 percent in 2028, according to the bank’s latest Europe and Central Asia Economic Update.

Restrictive policies have weakened domestic demand and helped contain inflationary pressures, while tight credit, weaker real wage growth, and sharply higher diesel prices have weighed on consumer spending, said the bank.

“Export growth remained volatile amid geopolitical uncertainty, weak EU demand, and stronger competition. However, trade diversion for certain products toward Türkiye, partly reflecting higher logistics costs and disruptions elsewhere, provided some support,”

Economic growth in Europe and Central Asia is expected to slow to 2.2 percent this year as higher energy prices, increased global uncertainty and weaker growth among trading partners weigh on activity, according to the bank. The forecast compares with growth of 2.6 percent in 2025.