World Bank Raises Growth Forecasts for Türkiye

In its latest Europe and Central Asia Economic Update, the World Bank has revised its growth projections for Türkiye upwards.

The bank lifted its 2024 forecast from 3.1 percent to 3.5 percent, raised its 2025 projection from 3.6 percent to 3.7 percent and increased its 2027 estimate from 4.2 percent to 4.4 percent, The Caspian Post reports citing Turkish media.

The World Bank said that “growth is expected to recover in Türkiye,” adding that expansion is “set to strengthen as monetary policy loosens and inflation continues to moderate.”

The bank also noted that “with investment recovering alongside resilient consumption, the expansion in Türkiye is becoming more broad-based, signaling a shift toward a more durable and sustainable trajectory.” It highlighted that investment growth is expected to recover moderately, supported by improving activity in construction, underpinned by public investment in reconstruction and urban renewal, as well as resilient housing demand.

The report pointed to Türkiye’s biggest opportunities for growth and job creation in tradable services and logistics, upgrading global value chain-linked manufacturing, renewable energy, care services that increase female participation and digital and ICT-enabled services.

The World Bank said Türkiye could further leverage its strategic location for advanced manufacturing, including the automotive industry, expand renewable energy production and scale its tradable and digitally enabled services sectors.