The World Bank stated in its latest regional economic update, released on April 8, that growth in Türkiye is expected to slow to 2.8% this year, as rising energy and food costs dampen consumption and keep borrowing costs high.

Growth is projected to firm to 3.7 percent in 2027 as policies become more accommodative amid continued disinflation, supporting a recovery in consumption and investment, according to the report, The Caspian Post reports, citing Turkish media.

The bank's January projections forecast that the Turkish economy would expand by 3.7 percent in 2026 and 4.4 percent in 2027.

Türkiye’s economy has undergone substantial structural transformation in recent decades, marked by substantial economic and social gains, including high growth and poverty reduction, the report said.

“Türkiye’s achievements reflect decades of structural transformation, integration into global markets, and a resilient private sector,” it added.

“These changes notwithstanding, more needs to be done to facilitate the transition toward higher-level technology and knowledge intensive production, as the share of high-tech products in manufacturing exports has remained broadly unchanged over the past decade [around 5 percent] and below peer or aspirational comparators,” the report said.

The 2030 Industry and Technology Strategy is well placed to address this challenge and support Türkiye’s transition to high-income status, with the goal of positioning Türkiye as a global leader in innovation, advanced manufacturing, and high-tech industries, it added.