Turkish economy records weakest growth in six years in Q2 2026

The Turkish economy grew by 2.3% year-on-year in the second quarter of 2026, marking its weakest growth performance since 2020. This figure came in below market analysts' expectations, indicating a notable slowdown in economic activity. In addition to the weak growth data, the number of unemployed rose by 150,000 in July. This negative development in the labor market further heightened concerns about the overall health of the economy and reinforced signals of a slowdown. Experts attribute the decline in growth momentum to weakening domestic demand and the effects of the high interest rate environment. In particular, the loss of momentum in consumption and investment spending was decisive in keeping economic growth limited. In the coming period, the continuation of anti-inflation policies and uncertainties in global economic conditions may continue to exert pressure on Turkey's growth trajectory. Market participants are closely monitoring the central bank's monetary policy steps and fiscal stimulus measures. This is not investment advice.