The International Monetary Fund (IMF) has revised its growth expectations for the Turkish economy downward in the October issue of its World Economic Outlook Report. The report stated that Turkey is expected to grow by 2.7 percent in 2026.
In July, the IMF had announced its 2026 growth forecast for Turkey as 2.9 percent. The 3.6 percent growth expectation for 2027 remained unchanged in the new report.
INFLATION EXPECTATION FOR TURKEY
The report projected that year-end inflation in Turkey will reach 31.2 percent in 2026 and 26.5 percent in 2027. Thus, the inflation outlook has emerged as one of the primary areas of vulnerability for the Turkish economy.
The growth forecast for the global economy was announced as 3.1 percent in 2026 and 3.4 percent in 2027. In its July report, the IMF had estimated that global growth would be 3 percent in 2026 and 3.4 percent in 2027.
According to the IMF, global headline inflation will rise to 4.7 percent in 2026 due to the impact of temporary increases in energy and food prices. Global inflation is expected to decline to 4.1 percent in 2027.
The report emphasized that the global economy has maintained its resilience, but this outlook is not evenly distributed among countries. It was stated that despite the ongoing war in West Asia and trade tensions, economic activity in the first half of 2026 performed better than expected.
The IMF pointed out that risks are predominantly on the downside. It was noted that if conflicts in West Asia are prolonged or tensions escalate, energy and food prices could remain high, which could increase inflationary pressures and weaken growth.
In the report's country forecasts, the 2026 growth expectation for the US economy was kept at 2.3 percent, while the 2027 forecast was raised to 2.3 percent. The Euro Area's 2026 growth forecast was raised to 1.1 percent.
The 2026 growth forecast for the Chinese economy was lowered to 4.5 percent, and the 2027 forecast to 4 percent. In India, expectations were revised upward, with 7 percent growth projected for both 2026 and 2027.
News Source: 12punto
