Overview

In an extension of the strong COVID-19 pandemic recovery, the economy grew at 5.6% in 2022. However, the economy has been losing momentum amidst a deteriorating external environment and heterodox monetary policies. Two devastating earthquakes struck on February 6, 2023: beyond the human tragedy, physical damage in 11 provinces accounting for 16.4% of Türkiye’s population and 9.4% of its economy. Direct losses are estimated at $34.2 billion, but the reconstruction needs could be double. The earthquakes added pressures to an increasingly fragile macro-financial situation. Pre-election spending and reconstruction efforts are expected to support growth, which is forecast at 3.2% in 2023 and 4.3% in 2024.

Source: World Bank 2024