Turkish Economy Gains Global Praise Amid Inflation Drop and FDI Growth

OECD’s Chief Economist Alvaro Pereira praised Türkiye’s economic reforms in an interview with Anadolu Agency, highlighting that the country’s commitment to monetary policies and fiscal discipline is starting to pay off. He projected that annual inflation could drop to 15% by the last quarter of 2026, with a boost in foreign direct investment expected.

According to Pereira, Türkiye's shift in macroeconomic policy has significantly reduced inflation, with the average rate expected to be around 18.5% in 2025. He emphasized that maintaining consistent fiscal and monetary discipline is key to ensuring long-term financial stability and a favorable environment for foreign investors.

He also mentioned that certain Turkish export sectors are well-positioned to expand into the US market, and that a clearer trade agreement between both nations would be beneficial. Furthermore, Pereira noted that macroeconomic stability remains the top factor for attracting sustainable FDI, underscoring the need for Turkey to continue reforms and improve business competitiveness within Europe.

Source: Anadolu Agency