turkey

In 2022, the Turkish economy registered a fall in the evolution of GDP compared to the previous year of 6.4 p.p., which translated into a growth of 5.0%. For 2023, a deceleration to 3.0% is forecast, with the growth rate expected to stabilise at that level. Export growth will slow as external demand weakens.

With regard to price evolution, inflation will have reached 73.1% in 2022, and is expected to decrease in 2023, but it will remain at high levels, around 51.2%. As had been predicted in 2021, the combination of factors such as the decrease in the purchasing power of families and the uncertainty about the political course that the Turkish government will follow in 2023 could slow domestic and foreign investment in the country. The large external financing needs and low reserves leave the Turkish economy highly vulnerable.