Turkey’s Economy in 2025: Growth, Stability & Investment Potential

Published on July 08

Economic Snapshot & Macroeconomic Outlook Turkey’s GDP growth is projected at 3.1 % in 2025, according to the World Bank, revised upward from 2.6 % in January BBVA research sees even stronger momentum, forecasting 3.5 % growth for 2025

Inflation is expected to moderate from around 38–42 % in early 2025 to about 29 % by year‑end, while interest rates remain elevated to support disinflation

The OECD notes that tighter fiscal and monetary policies have stabilized markets, though growth is expected to moderate in the near term

Foreign Investment & Market Sentiment

Foreign direct investment surged by nearly 90 % in Q1 2025, reaching around $13.1 billion, signaling renewed confidence

Local investors are drawn to Turkish debt markets, with $1.9 billion in inflows in early 2025, supported by easing inflation and rate cuts

Strategic Advantages for Foreign Investors

Turkey offers a compelling investment backdrop with: A population of over 84 million, half under 34, supplying a young, skilled and competitive labor force. A strategic East‑West location, multiple free‑trade agreements (including customs union with EU), positioning Turkey as a gateway to one billion consumers . A robust incentive structure: free zones, tax breaks, customs exemptions, and tech development areas that favor investment in priority sectors

High‑Growth Sectors for 2025

Renewable Energy & Green Infrastructure

Turkey is ramping up solar and wind power; wind accounts for ~10 % of current electricity, with plans to reach around 30 GW by 2035

Turkey aims to hit net zero emissions by 2053, making renewable energy a major long‑term investment frontier.

Manufacturing & Automotive

The nation’s strong manufacturing base, low labor costs, and location close to Europe make it ideal for companies relocating supply chains away from high‑tariff countries

Real Estate & Tourism

Real estate is thriving: pricing remains attractive relative to Europe/US, especially in Istanbul, Antalya, Ankara and tourist hotspots . Increased tourism returns and strong demand for accommodation, experiences, and retail make this sector ripe for growth .
Finance, Tech & Logistics
Healthcare, fintech, telecoms and logistics are also emerging as innovation hubs, supported by Istanbul and Ankara’s organized industrial zones and tech clusters

Conclusion
Turkey in 2025 offers a blend of economic stabilization, emerging-sector potential, and investment-friendly policies. While political and institutional risks merit caution, sectors such as renewables, real estate, tourism, and manufacturing present compelling opportunities—especially when guided by a partner like BSR.
Our tailored services help international investors navigate the landscape confidently, turning Turkey’s growth story into gainful impact.

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