EBRD Cuts Turkey's 2026 Growth Forecast to 3%

The European Bank for Reconstruction and Development lowered its 2026 growth forecast for Turkey to 3.0% from 3.5% in its latest Regional Economic Prospects report, citing weaker domestic demand amid high inflation, tight financial conditions and the impact of the Middle East conflict on energy prices, tourism and trade. The bank projected growth would accelerate to 4.0% in 2027 if regional tensions ease; the downgrade follows similar cuts by the OECD (3.1%), IMF (2.9%) and World Bank (2.8%).