OECD ups growth forecast for Türkiye to 3.1 percent for 2025

The Organization for Economic Cooperation and Development (OECD) has lifted its GDP growth forecast for the Turkish economy for 2025 from the previous 2.6 percent to 3.1 percent.

It, however, lowered the growth estimate for 2026 from 4 percent to 3.9 percent.

Among the OECD nations, Türkiye shared the top spot with Spain in the fastest-growing economies last year.

Türkiye and Spain’s growth rate reached 3.2 percent in 2024, followed by the U.S. with 2.8 percent.

Türkiye’s annual inflation rate is expected to be 31.4 percent at the end of 2025, according to the OECD, an upward revision by 0.7 percentage points.

The Paris-based organization raised the Turkish inflation forecast for 2026 by 0.1 percentage point to 17.3 percent.

The OECD lowered its projections for global growth in 2025 due to "trade barriers" and "uncertainty."

It trimmed back its 2025 projection from 3.3 percent growth to 3.1 percent, "with higher trade barriers in several G20 economies and increased geopolitical and policy uncertainty weighing on investment and household spending," while also forecasting inflation "to be higher than previously expected."

U.S. growth is expected to be 2.2 percent in 2025, down from the OECD's 2.4 percent projection in December, before falling to 1.6 percent in 2026, a drop of 0.5 percentage points on the OECD's previous forecast.

Likewise, the eurozone growth projection is down from 1.3 percent three months ago to just 1 percent but will continue its upward trajectory from 0.7 percent in 2024, reaching 1.2 percent in 2026.

China, meanwhile, is expected to maintain healthy growth at 4.8 percent in 2025 and 4.4 percent the following year.