World Bank lifts 2026 growth forecast for Turkish economy to 3.7 percent

ISTANBUL

The World Bank has raised its growth forecast for the Turkish economy from a previous 3.6 percent to 3.7 percent.

In its Global Economic Prospects report on Jan. 13 the bank also lifted its the GDP growth estimate for Türkiye from 4.2 percent to 4.4 percent.

“Private consumption growth is expected to strengthen, supported by rising real wages amid continued gradual disinflation,” said the report.

The current account deficit is expected to widen, while the fiscal deficit is projected to narrow, mainly reflecting reduced earthquake-related reconstruction spending, it added.

Growth is estimated to have edged up to 3.5 percent in 2025—0.4 percentage point higher-than-expected in June, the report said.

The Turkish economy expanded by 3.7 percent year-on-year in the third quarter of 2025, slowing from 4.9 percent growth recorded in the previous quarter, according to the latest official data.

The bank also raised its global economic growth forecasts from 2.4 percent to 2.6 percent for 2026 and from 2.6 percent to 2.7 percent for next year.

The global economy has proven more resilient than expected, despite trade tensions and policy uncertainty, it said.