Turkey cuts growth and inflation forecasts as Gulf war weighs on economy
Turkey has sharply revised down its economic projections for the next three years, blaming the Gulf war and global uncertainty for pushing inflation well above target and slowing growth across key industries.
The government's medium-term programme for 2027 to 2029, presented in Ankara, by Vice President Cevdet Yılmaz, lowers the 2026 growth forecast to 3.3% from 3.8% and revises the inflation target for this year to more than 28%, up from 16%.
Vice President Yılmaz further added that seven percentage points of that inflation increase are directly attributable to the regional conflict.
"The effects of the war in our region are felt in many areas. In addition to tariff increases, global uncertainties are also affecting the medium-term programme," Yılmaz said, adding that decreased predictability in the global economy had compounded the challenge.
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Muhammad Ali Bandial