ECONOMY GROWS 2.3% IN Q2, SLOWEST EXPANSION SINCE PANDEMIC
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%.
Analysis
In-Depth Analysis
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INFLATION HITS TURKEY'S TOURISM ENGINE
Turkey's tourism industry, long considered an economic powerhouse, is struggling to achieve expected revenue growth this year as inflation drives up costs and diverts customers elsewhere.
TOP BUSINESS GROUP URGES ECONOMIC SHIFT, STAYS MUM ON DEMOCRACY AND RULE OF LAW
The top business association, TÜSİAD, urged the government to focus on development over mere economic growth. The meeting of the group’s High Advisory Council saw Chair Ömer Aras, who was detained last year after criticism over democracy and the rule of law, carefully avoid those topics this time around.
ECONOMIC GROWTH SLOWS AS FORECASTS REVISED DOWNWARD
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.
THREE-YEAR ECONOMIC ROAD MAP UNVEILED; 2025 INFLATION TARGET RAISED 11 POINTS
Vice President Cevdet Yılmaz unveiled the Medium-Term Program for 2026–28, raising the end-2025 inflation target by 11 points from the previous plan. Yılmaz said real GDP growth targets are 3.8% in 2026, 4.3% in 202, and 5.0% in 2028. The inflation path is 28.5% for end-2025, 16% for end-2026, 9% for 2027, and 8% for 2028.
TURKEY’S ECONOMIC FUTURE: AT THE CROSSROADS OF GLOBAL REORDERING
As the dust settles from the economic shocks of the pandemic, the Ukraine war, and the breakdown of traditional supply chains, a new global order is taking shape—one where economic policy is no longer just about growth and trade but about power, resilience, and survival. Amid this transformation, Turkey stands at a crossroads: a country historically anchored to the West but increasingly drawn to non-Western alignments, and now forced to choose a direction in a fractured world.