World Bank ups Türkiye’s 2025 growth forecast to 3.1 percent

WASHINGTON

The World Bank released its “Global Economic Prospects June 2025” report on June 10, revising Türkiye’s 2025 growth forecast to 3.1 percent, up 0.5 percentage points from its January estimate of 2.6 percent.

For 2026, the World Bank lowered Türkiye’s growth estimate from 3.8 percent in January to 3.6 percent. The report projects Türkiye’s growth to reach 4.2 percent by the end of 2027.

Yesterday, in a post on his X account, Finance Minister Mehmet Şimşek stated, “Confidence in our program is improving expectations. The World Bank, which cut growth forecasts for nearly 70 percent of economies for 2025, raised Türkiye’s estimate by 0.5 points. We will resolutely continue policies to strengthen sustainable high growth.”

Türkiye and Argentina saw the largest upward revisions in the bank’s 2025 forecasts.

Globally, the bank cut its 2025 growth forecast from 2.7 percent to 2.3 percent, the lowest in 17 years.

It warned that trade tensions and policy uncertainties could lead to an average global growth of 2.5 percent in the first seven years of the 2020s, marking the weakest decade since the 1960s.

This month, the Paris-based Organisation for Economic Co-operation and Development also slashed its 2025 global growth forecast from 3.1 percent to 2.9 percent, warning that Trump's tariffs would stifle the world economy.

This came after the International Monetary Fund in April cut its world growth expectations for this year too on the effects of Trump's levies, from 3.3 percent to 2.8 percent.