The Organization for Economic Co-operation and Development (OECD) cut its forecast for Turkey\u2019s economic growth in 2026 to just 2.7% on Thursday, below the 3% threshold and the country\u2019s lowest growth rate since 2020, as the economic fallout from the war in Iran and rising energy and fertilizer prices weigh on the outlook.<\/p>\n
The organization, which published its latest economic outlook under the title \u201cNavigating Successive Shocks,\u201d also lowered Turkey<\/a>\u2019s 2027 growth forecast to 3.6%. In its previous forecast, the OECD had projected growth of 3.1% in 2026 and 3.8% in 2027.<\/p>\n Despite pressure from energy and fertilizer prices, the OECD expects Turkey\u2019s disinflation process to continue, with inflation projected at 31.5% in 2026 and 24.7% in 2027. At the same time, monetary policy easing in emerging economies such as Turkey and Brazil is expected to support economic growth.<\/p>\n Globally, the organization slightly raised its 2026 economic growth forecast to 2.9%, up 0.1 percentage points from its June projection, after the global economy expanded by 3.4% in 2025.<\/p>\n Although growth slowed in the first half of the year, many economies remained resilient despite geopolitical risks in the Middle East, while the growing strength of artificial intelligence<\/a> continued to support investment, manufacturing, and trade.<\/p>\n The US economy is projected to grow by 2.2% in 2026 and 2.1% in 2027. The eurozone is expected to grow by just 1% in each of those years, while China<\/a>\u2019s economy is forecast to expand by 4.5% in 2026 and 4.2% in 2027.<\/p>\n India is expected to post the highest growth rate this year, at 7.8%, followed by Indonesia at 5.2%. Saudi Arabia, by contrast, is projected to record the sharpest contraction, shrinking by 1.8% following a decline in oil production and exports against the backdrop of the war in the Middle East.<\/p>\n