According to Sina Finance, the European Bank for Reconstruction and Development (EBRD) cut its 2026 economic growth forecast for Turkey to 3.0% from 3.5%, citing weak domestic demand, high inflation, and tight financial conditions. The bank said Turkey's economy is expected to recover to 4.0% in 2027. It also said the ongoing Middle East conflict is weighing on the outlook by pushing up energy prices, affecting tourism revenue, and disrupting trade. Rising foreign-currency liabilities are exposing corporate balance sheets to the risk of lira depreciation. The EBRD said its investment in Turkey has exceeded 25 billion euros, mainly in the private sector.