Latest News from Turkey
Vice President Yılmaz Predicts Financial Improvement in 2026
Vice President Cevdet Yılmaz stated that overall financial conditions in Turkey are expected to improve in 2026, with the government addressing real sector financing challenges. He highlighted Turkey's 12.2% FDI increase to $13.1 billion in 2025, led by trade, manufacturing, and tech sectors.
Inflation eased to 30.7% in January, with ongoing disinflation efforts.
Turkish Households Maintain 48.81% Inflation Expectation
The CBRT's February 2026 Household Expectation Survey shows 12-month inflation forecasts steady at 48.81%, with 63.4% expecting higher inflation ahead. Gold investment preference rose to 55.5%, while real estate interest fell to 30%.
Concerns shift toward fuel, energy, and rents after food prices.
Turkic States Boost Mutual Trade and Economic Ties
OTS member states, including Turkey, saw 6.86% regional growth in 2025, with intra-trade over $11.9 billion. New agreements on services, investments, and a trade partnership MoU were signed.
The Turkic Investment Fund in Istanbul starts operations in Q1 2026.
Turkey Repositions for Economic Security Amid Global Trade Slowdown
Turkey focuses on export boosts, strategic diversification, and industrial upgrades as global trade growth slows to 2.6% in 2026. Renewable energy capacity exceeds 75,000 MW, ranking high globally.
E-commerce hit TL 3 trillion in 2024, driven by digital initiatives.
Turkey Expands Upstream Gas Deals for Import Reduction
Turkey signed cooperation agreements with international oil majors to cut high gas import reliance and enter global gas trading. This upstream push aims to mitigate domestic needs while expanding trade influence.
Details on specific majors and projects remain emerging.
Turkey's Influence Grows in Africa Over Two Decades
Turkey has strategically expanded economic and diplomatic ties in Africa over 20 years, reshaping regional dynamics. This growth bolsters trade, investments, and partnerships across the continent.
Long-term efforts position Turkey as a key African player.
Industrial Production Contracts 2.1% Year-on-Year
Turkey's latest industrial production YoY fell to -2.1% from 2.2% previously, signaling a downturn. Monthly production rose 1.2% against a 5.0% consensus.
This reflects ongoing manufacturing challenges into early 2026.
Upcoming GDP Data Shows Steady Growth Projections
Turkey's Q4 GDP growth QoQ is reported at 1.1%, YoY at 3.7% on February 27. Unemployment steady at 7.7%, economic confidence at 99.4.
These figures indicate balanced growth amid policy focus.
Real Estate Market Cools as Investors Shift to Gold
Household surveys show real estate investment interest dropping to 30% due to high prices, with gold surging amid inflation fears. Housing price expectations eased slightly to 35.41%.
2026 forecasts suggest prices may rise further, impacting affordability.
Turkey Advances Renewable Energy and Digital Economy
Turkey's renewable capacity tops 75,000 MW, fifth in Europe, with gains in solar, wind, and hydrogen. National AI and Digital TĆ¼rkiye strategies drive e-commerce past $68 billion.
These support economic security and tech sovereignty.
Trade Deficit Widens as Exports and Imports Fluctuate
Recent balance of trade finalized at -$9.3B, with exports at $26.4B and imports $35.7B. Preliminary March data shows exports $21.8B, imports $28.5B, deficit -$6.7B.
Auto production down 2%, sales up 12.6% YoY.