EBRD Lowers Economic Growth Forecasts for Türkiye and the Region

The European Bank for Reconstruction and Development (EBRD) announced the Regional Economic Outlook report covering the countries in which it operates, including Türkiye.

IMPACT OF THE WAR IN THE MIDDLE EAST

The report estimated that average economic growth in the countries where the bank operates will be 2.5 percent this year and 4 percent in 2027. These rates mean that the EBRD revised its economic growth forecast for the region downwards by 0.6 and 0.4 points, respectively, compared to its June level.

In the report, it was predicted that the Turkish economy would grow by 3 percent this year and 4 percent in 2027. The bank's growth forecast for the Turkish economy this year was announced as 3.5 percent in June.

INVESTMENT OVER 25 BILLION EUROS

In the bank's report, it was reported that the downward revision in growth in the Turkish economy was influenced by the weakening domestic demand in an environment of high inflation and tight financial conditions, as well as the ongoing impact of the war in the Middle East and cost competitiveness pressures for exports.

On the other hand, the report noted that ensuring permanent peace in the Middle East, strengthening foreign demand and maintaining monetary policy discipline could support investments and faster growth.

EBRD has investments of over 25 billion euros in Türkiye, most of which are in the private sector.