Turkey’s GDP growth loses momentum in first quarter
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CENTRAL AND EASTERN EUROPE: Turkey’s economy grew by 2.5% in the first quarter of 2026, slowing from the previous period. This performance was mainly driven by net exports, reflecting the impact of the US-Iran war
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4 itemsTurkey’s 2Q GDP growth restrained by softer domestic demand
The Turkish economy experienced a modest 2.3% growth in 2Q26, driven mainly by net exports amid a backdrop of declining domestic demand, indicating a slowdown in economic momentum. Per the full note from ING, this performance fell short of market forecasts, signaling potential challenges for the Turkish lira as traders reassess growth prospects. The subdued household consumption, which detracted significantly from GDP growth, is a key concern going forward. Monitoring the impact of these economic indicators will be essential as we navigate the upcoming months with no immediate high-impact events scheduled.
Monitoring Turkey: Softening in economic activity
The desk suggests that Turkey's economic landscape is deteriorating, with domestic demand faltering significantly and negative net exports further constraining growth. Per the full note [source], the country's GDP growth is projected to slow to around 3% this year, exacerbated by high borrowing costs and tight monetary policies. Inflation remains troubling, staying close to 30%, which will likely necessitate sustained tight monetary policy. With no major events scheduled in the next month, current market dynamics indicate a focus on these economic signals and their potential impacts on the Turkish Lira.