Turkey economy at a glance

Latest figures for Turkey: inflation, growth, interest rates, jobs, bond yields, debt and taxes. Updated 6 November 2026. Open Turkey on the interactive map →

Key figures

Indicator	Latest	Period	Previous
Inflation (consumer prices, year on year)	29.8%	October 2026	29.7% September 2026
Core inflation (excluding food and energy)	28.3%	October 2026	28.7% September 2026
Real GDP growth (year on year)	2.3%	Q2 2026	2.6% Q1 2026
Policy rate (Central Bank of the Republic of Turkiye)	36.00%	November 2026	36.00% October 2026
Unemployment rate	8.4%	September 2026	7.9% August 2026
10-year government bond yield	33.02%	October 2026	32.84% September 2026
Manufacturing PMI (Istanbul Chamber of Industry / S&P Global Turkiye Manufacturing PMI)	47.3	October 2026	47.9 September 2026
Retail sales (year on year)	10.1%	August 2026	9.9% July 2026
Industrial production (year on year)	−1.9%	August 2026	−0.2% July 2026
House prices (year on year)	25.1%	Q2 2026	26.7% Q1 2026
Stock market (BIST 100)	11,333	November 2026	+4.0% over 12 months

Questions and answers

What is the inflation rate in Turkey?

Turkey's annual inflation rate was 29.8% in October 2026, unchanged from September 2026.

What is the interest rate in Turkey?

The Central Bank of the Republic of Turkiye one-week repo rate is 36.00% (as of November 2026). The next rate decision is due on 10 December 2026.

How fast is Turkey's economy growing?

Turkey's real GDP grew 2.3% year on year in Q2 2026. The IMF's October 2026 World Economic Outlook forecasts growth of 2.7% in 2026 and 3.6% in 2027.

What is the unemployment rate in Turkey?

Turkey's unemployment rate was 8.4% in September 2026, up from 7.9% in August 2026.

What is Turkey's 10-year government bond yield?

Turkey's 10-year government bond yield averaged 33.02% in October 2026.

How much government debt does Turkey have?

Turkey's government debt is about 23.7% of GDP (latest annual figure), with a budget deficit of 3.1% of GDP.

What is Turkey's credit rating?

Turkey's sovereign credit ratings: S&P BB-, Moody's Ba3, Fitch BB-.

What is the VAT rate in Turkey?

Turkey's standard VAT rate is 20% (2026 rules).

What is the corporate tax rate in Turkey?

Turkey's corporate income tax rate is 25.0% (2026 rules).

Who leads Turkey?

Turkey is led by President Recep Tayyip Erdogan (head of state and government). Next election: Presidential and parliamentary elections due by May 2028 (Fitch's baseline assumes a vote in late 2027).

Outlook

Fitch expects growth to slow to about 2.8% in 2026 before recovering to 4.4% in 2027, while the government targets 3.3% and 4.2%. The CBRT cut its policy rate to 36% on 22 October and says further steps depend on disinflation; BBVA expects inflation to stay near 30% until early 2027 and another 100 bp cut only if year-end inflation undershoots 30%. Domestic demand is softening: unemployment rose to 8.4% in September and consumer confidence fell to 84.8 in October. Upside: steady disinflation and a return of portfolio inflows. Downside: energy prices from the Gulf war, contagion from the investment-fund crisis, political risk ahead of the 2027-28 elections and a wider current-account gap (Fitch sees about 3% of GDP).

Why Turkey matters for the world economy

Turkey is a sizeable EM borrower and a manufacturing hub tightly integrated with European supply chains (autos, white goods, textiles), so its demand and production cycle matters for the EU, its largest export market. It is also a big net energy importer, which makes it one of the most exposed economies to the oil shock from the US-Iran war, and a key transit and refining customer for Russian crude and gas. Episodes of lira stress, the September 2026 fund-market crisis and MSCI's threat to reclassify Turkish indices feed through to EM portfolio flows and European banks with Turkish subsidiaries (notably Spanish and Italian lenders). Geopolitically, Ankara sits on the Bosporus shipping route and is a mediator in the Black Sea and Middle East.

Politics

Erdogan's AKP-MHP alliance controls government while the opposition is fractured: a May 2026 court ruling annulled Ozgur Ozel's CHP leadership and reinstated Kemal Kilicdaroglu, after which Ozel and about 90 MPs left to form the New Party. The episode briefly hit the lira and pushed the central bank into tighter funding conditions. Since mid-September a run on several investment funds and liquidations of fund managers have shaken Borsa Istanbul and drawn MSCI warnings about market integrity. On 22 October parliament passed a law giving investors in the liquidated funds interim payouts of up to 1 million lira.

System: Unitary presidential republic.

Economy and taxes

GDP: US$1,597 billion
Population: 86.1 million
Government debt: 23.7% of GDP
Budget balance: −3.1% of GDP
Current account: −1.9% of GDP
Exports: 24.8% of GDP
Main exports: Motor vehicles and parts, machinery, iron and steel, textiles and apparel, electrical equipment, refined fuels, jewellery/gold, agri-food, defence equipment
Top export markets: Germany (8.3%), United Kingdom (5.9%), United States (5.5%), Italy (5.2%), France (4.4%)
IMF growth forecast: 2.7% in 2026, 3.6% in 2027
IMF inflation forecast: 31.2% in 2026, 26.5% in 2027
Currency: TRY
Freelancer tax: A self-employed person earning the average wage (TRY 833,120 a year) pays about 33.2% of it in income tax and social contributions (2026 rules)
Top income tax rate: 40.0%
Gold reserves: 795.2 tonnes (September 2026)
Energy self-sufficiency: 24% (2024)

Recent news

3 November 2026 Turkish inflation edges up to 29.77% as monthly prices jump Hurriyet Daily News
Annual consumer inflation rose slightly to 29.77% in October from 29.73%, as prices climbed 2.58% in the month, more than the 2.4% expected. Food, transport and housing added most; some brokers still expect a 100bp rate cut to 35% on 10 December.
3 November 2026 Turkey posts record October exports of $25.9bn Hurriyet Daily News
Goods exports rose 8.1% from a year earlier to a record for the month, while imports grew 3.4%, narrowing the trade deficit by 11.4% to $6.7bn. Germany, the US and the UK were the top buyers, and the EU the largest market overall.
2 November 2026 Turkish factory downturn deepens, with the PMI at 47.3 Trading Economics / S&P Global
The Istanbul Chamber of Industry manufacturing PMI fell to 47.3 in October from 47.9, a 31st month below 50 and the steepest decline since June. Output and new orders fell further, and higher oil prices and a weaker lira pushed up input costs.
27 October 2026 Turkish unemployment jumps to 8.4% in September Hurriyet Daily News
The seasonally adjusted jobless rate rose 0.5 points from August as the number of unemployed grew by about 198,000 to 2.97 million, and youth unemployment climbed to 14.8%, another sign that domestic demand is cooling.
22 October 2026 Turkish central bank resumes easing with a 100bp cut to 36% A News (Anadolu Agency)
The CBRT cut its one-week repo rate from 37% to 36% after five straight holds, citing slowing underlying inflation and weak demand. It warned that high energy prices remain a risk and said each future step will be decided meeting by meeting.
22 October 2026 Parliament passes law on payouts to investors in collapsed funds Hurriyet Daily News
Investors in the funds ordered into liquidation can get interim payments of up to 1 million lira, based on the cash they put in, and fund managers are made liable for losses. The law takes effect once it is signed and published in the Official Gazette.

Headlines and summaries are compiled daily from the linked reports with AI assistance.