{"id":368715,"date":"2026-01-14T04:56:16","date_gmt":"2026-01-14T04:56:16","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/368715\/"},"modified":"2026-01-14T04:56:16","modified_gmt":"2026-01-14T04:56:16","slug":"world-bank-revises-up-2026-2027-growth-forecasts-for-turkiye","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/368715\/","title":{"rendered":"World Bank revises up 2026, 2027 growth forecasts for T\u00fcrkiye"},"content":{"rendered":"

The Turkish economy is estimated to have closed 2025 with a higher-than-expected growth, the World Bank said on Tuesday, as it upgraded its outlook for 2026 and 2027.<\/p>\n

T\u00fcrkiye’s gross domestic product (GDP) is estimated to have expanded by 3.5% in 2025, 0.4 percentage points higher than what the World Bank projected in June.<\/p>\n

Activity was supported by solid domestic demand, particularly robust construction investment and monetary easing throughout the year, the bank said in its semi-annual Global Economic Prospects report.<\/p>\n

“International reserves and equity markets recovered following financial market volatility earlier in 2025, reflecting some easing of political tensions,” it noted..<\/p>\n

This year, growth in T\u00fcrkiye is forecast to pick up to 3.7%, the bank said, up from its June forecast of 3.6%.<\/p>\n

The World Bank expects private consumption growth to strengthen, supported by rising real wages amid continued gradual disinflation.<\/p>\n

It said the current account deficit is expected to widen, while the fiscal deficit is projected to narrow, mainly reflecting reduced earthquake-related reconstruction spending.<\/p>\n

For 2027, the bank upgraded its projection to 4.4% from 4.2%.<\/p>\n

The revised forecasts place T\u00fcrkiye among the faster-growing large emerging markets over the 2025-2027 period.<\/p>\n

Globally, the World Bank said the economy is proving more resilient than expected<\/a>, with 2026 GDP growth expected to improve slightly over forecasts from June.<\/p>\n

It still warned that growth is too concentrated in advanced countries and overall too weak to reduce extreme poverty.<\/p>\n

The bank expects world GDP growth of 2.6% this year. The figure is 0.2 percentage points higher than what it projected in June.<\/p>\n

But the rate still marks a slowdown from the 2.7% pace seen in 2025, with the World Bank warning that the 2020s are “on track to be the weakest decade for global growth since the 1960s.”<\/p>\n

Last year’s growth exceeded the prior forecast by 0.4 percentage points. The report shows that global output growth is edging back to 2.7% in 2027.<\/p>\n

The World Bank said about two-thirds of the upward revision for 2026 reflects better-than-expected growth in the U.S. despite tariff-driven trade disruptions.<\/p>\n

It predicts U.S. GDP growth will reach 2.2% in 2026, compared to 2.1% in 2025 \u2013 up 0.2 and 0.5 percentage points from the June forecasts, respectively.<\/p>\n

Growth in emerging markets and developing economies will slow to 4% in 2026 from 4.2% in 2025, up 0.2 and 0.3 percentage points from the last predictions, respectively.<\/p>\n

But excluding China, the 2026 growth rate for this group will be 3.7%, unchanged from 2025, the World Bank said.<\/p>\n

China’s growth will slow to 4.4% in 2026 from 4.9%, but the forecasts are both up 0.4 percentage points \u2060from June due to fiscal stimulus and increased exports to non-U.S. markets.<\/p>\n

Growth in the eurozone is set to slow to 0.9% in 2026 from 1.4% in 2025 due to the drag from U.S. tariffs but recover to 1.2% in 2027 due to increases in European defense spending, the World Bank said.<\/p>\n

Japan’s outlook is much the same for 2026, with growth slowing to 0.8% after a rise of 1.3% in 2025, \u2060a year aided by the front-loading of exports to the U.S. to beat President Donald Trump’s tariffs. But slower consumption and investment in Japan will keep GDP growth unchanged at 0.8% for 2027, the World Bank said.<\/p>\n

\"\"\/<\/p>\n

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