Moody's Turkey 2025-27 Economic Growth & Inflation Forecast

Moody’s Forecasts Turkey’s Economic Growth at 3.2% in 2025

ISTANBUL – International credit rating agency Moody’s has forecast that Turkey’s economy will grow by 3.2% in 2025, followed by 3.4% in 2026 and 3.5% in 2027, according to its Global Structured Finance Report.

The report outlines economic growth and inflation projections for G20 countries and indicates a gradual acceleration of Turkey’s economic growth over the three-year forecast period.

Inflation Forecast and Macroeconomic Trends

Moody’s also expects inflation in Turkey to remain elevated in 2025 at around 35%, with a margin of ±2%. However, the agency projects a gradual decline in inflation to 22% in 2026 and 18.5% in 2027, signaling a trend toward macroeconomic stabilization.

The outlook suggests steady economic expansion supported by ongoing policy adjustments, although inflationary pressures are expected to remain a key challenge in the near term.

The forecast underscores a dual trajectory for the Turkish economy: moderate but steady growth coupled with a gradual disinflation process over the medium term, contingent on continued structural and monetary policy discipline.