In 2025, Turkey moved from an «aggressive stabilization» phase to a more sustainable, long-term economic model. The country succeeded in easing extreme inflationary pressures, which peaked at 75.5% year over year in May 2024. However, inflation remains elevated, standing at 30.9% in December 2025, well above sustainable levels.
Moderate growth driven by services and construction
GDP grew by 3.6% year over year in 2025. Growth was supported primarily by the expansion of the services sector and continued strength in construction. The government is still rebuilding housing and infrastructure following the devastating 2023 earthquakes.
The services sector posted solid growth of...