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Turkey

Ankara Β· TRYΒ·Middle East
critical riskB+Central Bank of the Republic of Turkey
AI Intelligence Summary

Turkey represents the most dramatic monetary policy reversal in recent G20 history. After years of unconventional ultra-low rates under political pressure, the post-election orthodox turn has seen rates surge from 8.5% to 45%. Inflation peaked at 85% and is gradually declining. The Lira has suffered significant depreciation. Erdoğan's new economic team is working to rebuild credibility with international markets. FX reserves are rebuilding. The path to normalisation is real but fragile β€” political risk remains a constant overhang.

4.50%
GDP Growth
67.10%
CPI Inflation
72.30%
Core CPI
8.80%
Unemployment
45.00%
Policy Rate
-22.10%
Real Rate
30.20%
Debt/GDP
50.20
PMI
GDP Growth Rate
Annual real GDP growth (%)
Inflation (CPI)
Consumer price index annual change (%)
Monetary Policy Rate
Central bank benchmark rate (%)
Unemployment Rate
% of labour force unemployed
Full Indicator Dashboard
IndicatorValueStatus
GDP Growth4.50%strong
Headline Inflation67.10%high
Core Inflation72.30%high
Unemployment Rate8.8%high
Policy Rate45.00%accommodative
Real Interest Rate-22.10%negative
Yield Curve Spread12.40%normal
Debt / GDP30.2%sustainable
Current Account-3.80%deficit
Fiscal Balance-5.20%deficit
PMI (Composite)50.2expansion
M2 Growth68.40%rapid
Industrial Production3.80%growing
Trade Balance$-98.4Bdeficit
FDI Inflows$8.8Bmoderate
FX Reserves Coverage3.8 monthsmoderate