Economy of Turkey

The Turkish economy still has a growth potential and may join high-income countries within a year or two, Finance Minister Mehmet Şimşek has said, adding that disinflation has begun and is continuing.

"We are converging to European Union countries in terms of per capita income," the minister said, speaking at an energy conference in Istanbul.

Türkiye's economic growth will ease to 3.5 percent in 2024 and 2.6 percent in 2025 as necessary macroeconomic stabilization policies will slow domestic demand, the Organization for Economic Cooperation and Development (OECD) said in its Economic Outlook report published on Dec. 4.

The total value of projects implemented by the Turkish contracting sector abroad in eight months of this year has amounted to $11.2 billion.

According to Trade Ministry data, the Turkish contracting sector has continued its successful performance abroad despite risks such as the COVID-19 pandemic and the Russia-Ukraine war in recent years.

Türkiye's annual inflation rate is expected to decrease to 55.2 percent in August, down from 61.78 percent in July, according to an Anadolu Agency poll of economists.

The survey found that the monthly inflation rate is projected to be 2.64 percent for August, a decrease from 3.23 percent in July.

The economists' forecast for year-end annual inflation is 42.84 percent.

The current course of inflation is in line with their projections, Finance Minister Mehmet Şimşek has said.

"We believe that we will close the year with an inflation rate of around 40 percent," Şimşek said in an interview on Aug. 6 with private broadcaster A Haber.

Turkish firm Aselsan attended the Farnborough International Airshow in the U.K., where Ahmet Akyol, the company's CEO, told state-run Anadolu Agency that the military provider is working hard to be one of the top 30 defense companies by 2030.

Türkiye ranked first in Europe and was among the top 10 countries in the world last year in terms of agricultural income generated, Agriculture and Forestry Minister İbrahim Yumaklı has said.

Türkiye's agricultural income amounted to $68.5 billion in 2025, said Yumaklı, citing data from the UN's Food and Agriculture Organization and the World Bank.

International credit rating agency Fitch Ratings has revised its growth forecast for the Turkish economy, raising it from 2.8 percent to 3.5 percent for this year.

The adjustment comes amid stronger-than-expected economic performance in the first quarter.

World Bank President Ajay Banga with Finance Minister Mehmet Şimşek in Ankara on June 11.

The World Bank has lowered its growth projection for the Turkish economy for 2024 from a previous 3.1 percent to 3 percent.

In its Global Economic Prospects Report released on June 11, the bank also cut the GDP growth forecast for 2025 from 3.3 percent in January to 3 percent.

Türkiye Wealth Fund (TWF) has signed a $100 million Murabaha financing agreement with Sharjah Islamic Bank (SIB).

This three-year term agreement marks the first Islamic finance transaction for the TWF.

Doğan Investment Bank acted as the financial adviser and coordinator for the transaction, the fund said in a statement.