Analysis
Smart, independent reporting on Turkey's politics, economy and foreign affairs.
“The European Union will open its vast economy to countries waiting to join its ranks, provided they agree to stand with the bloc against hostile states and industrial rivals, according to a draft European Commission proposal obtained by POLITICO.”
In contrast to President Recep Tayyip Erdoğan’s declaration that the EU is not a priority for Turkey, new trade and industry measures that are taking shape within the 27-member bloc remain an urgent matter for large sections of the economy.
The economy grew by 2.3% year-on-year in the second quarter of 2026, extending its continuous growth streak to 24 quarters but missing market expectations of 2.8%.
Ten years after the failed coup, the crackdown on Gülenist-owned businesses has become a revenue stream: the state has collected $1.5 billion from selling off seized firms — and the state fund managing them has grown into one of the country's largest conglomerates, its reach now extending far beyond the Gülenists.
Is Mehmet Şimşek missing in action? No. He's still in office, still serving as the minister in charge of the economy. But that very fact is what makes people ask 'When will he step into the light?'
The Turkish economy grew by 2.5% in the first quarter of 2026 compared to the same period last year, lower than the 2.7% growth expected by economists. TurkStat data showed that quarter-on-quarter GDP growth remained at 0.1%. Household consumption made the largest contribution to growth with 3.4 percentage points. However, industrial production contracted. Also, the negative contribution of net foreign trade expanded.
At Istanbul Airport, one can sometimes see the new Turkish economy walking past in surgical bands. Men arrive with thinning hair and leave with careful instructions, swollen foreheads and a cautious sense of restoration.
Internal friction among top economy officials came to light after a senior central banker dismissed the impact of political cycles on monetary policy. The remarks by Deputy Governor Cevdet Akçay triggered a sharp rebuke from pro-government figures and suggestions of a rift between the central bank and the Presidency.
Bakım, or care, is one of those deceptively soft words, the sugar coating over a complex vitamin pill, a soft towel draped over the hard machinery of an economy. It suggests tenderness and love. What it rarely suggests is exhaustion, lost income, or the quiet arithmetic of inequality.
The government’s efforts to cool down the Turkish economy are falling short as rising energy prices and deteriorating market confidence push inflation targets out of reach.
The war that erupted on Feb. 28, between Iran, the U.S. and Israel has sparked deep global uncertainty, as Iran targets U.S. bases and strategic energy infrastructure across the Gulf.
Central Bank Governor Fatih Karahan has likened inflation to a virus, saying it becomes harder to eliminate the longer it lingers in the economy. “We are applying the right prescription,” he said. “We’ve achieved positive results so far, and we have no doubts about our ultimate goal. But the effect of the prescription varies from case to case.”