Analysis
Smart, independent reporting on Turkey's politics, economy and foreign affairs.
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.
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.