Turkey’s economy to see 3.0% growth in ’25 – EBRD

Turkey’s economy is likely to rebound in 2025, with a projected GDP growth rate of 3.0 per cent, according to the Regional Economic Prospects report released by the European Bank for Reconstruction and Development (EBRD) on Wednesday.

This follows a predicted slowdown to 2.7 per cent in 2024, after robust growth rates of 11.4 per cent in 2021, 5.5 per cent in 2022, and 4.5 per cent in 2023. Despite these optimistic forecasts, Turkey’s revenue growth has been sluggish since September 2023, with a marginal increase of just 0.3 per cent.

The country’s economic expansion was fueled by the services sector last year, with rebuilding efforts following an earthquake also contributing significantly.

The report highlights that Turkey has adopted a more stringent economic policy, characterised by tax hikes and enhanced macroprudential measures. From June 2023 onwards, the Central Bank of the Republic of Turkey has raised its policy rate on nine occasions, escalating it from 8.5 per cent to 50 per cent.