IMF cuts Turkey 2026 growth forecast to 3.4 percent
The IMF lowered its growth outlook for Turkey to 3.4 percent today citing high energy prices. Inflation is expected to average 28.6 percent during the year 2026.
The International Monetary Fund (IMF) has significantly lowered its economic growth projections for Turkey for the next two years, citing a combination of cooling domestic momentum and the persistent pressure of high global energy costs. According to the latest World Economic Outlook report released on Tuesday, the IMF now expects the Turkish economy to expand by 3.4% in 2026, a sharp reduction from the 4.2% growth rate previously estimated in January.
The downward revision reflects a weaker-than-anticipated performance in 2025, where official data showed growth reached only 3.6% compared to the Fund's earlier prediction of 4.1%. This loss of momentum is expected to persist, leading the IMF to also trim its 2027 growth forecast to 3.5% from a prior estimate of 4.1%.
