Overview
Turkey's economy in late 2025 shows signs of stabilization following years of high inflation and currency volatility, with GDP growth projected at around 3.5% for the year, driven by exports and tourism recovery. Inflation has moderated to approximately 25-30% year-over-year, down from peaks above 80% in 2022, thanks to tighter monetary policy under the Central Bank. However, challenges like geopolitical tensions and energy import costs persist.

Key Indicators
GDP Growth: Real GDP expanded by 2.8% in Q3 2025, supported by a 15% rise in industrial production and robust construction activity.
Inflation and Interest Rates: The annual inflation rate stood at 28.5% in November 2025, with the policy rate held at 50% to curb price pressures.
Unemployment: The rate hovered at 8.5% in October 2025, with youth unemployment remaining a concern at over 15%.
Currency Performance: The Turkish lira has depreciated by about 20% against the USD year-to-date, impacting import costs but boosting export competitiveness.