December 2025

As 2025 draws to a close, the Turkish economy presents a mixed assessment, yet one that is firmly forward-looking. After several years marked by high inflation and significant macroeconomic adjustments, Türkiye is entering a phase of gradual disinflation, stabilization of economic balances, and strengthening business momentum.

Inflation: a clear decline, but continued vigilance required

In November 2025, inflation stood at 31.1%, its lowest level in four years, after peaking above 75% in 2024. This decline represents a key milestone in the disinflation process underway for several quarters.

While the decrease is significant, inflation remains elevated and continues to weigh on purchasing power. Some observers also suggest that actual price increases may still be underestimated.

Nevertheless, the outlook remains downward-oriented. International institutions anticipate a continued disinflation trend in 2026, with the OECD projecting inflation at around 20.8%, while highlighting the persistence of pressures, particularly in the services sector.

Economic growth: resilience in 2025 and ambitions for 2026

Despite an uncertain international environment, the Turkish economy is expected to record growth of around 3.5% in 2025, supported by relatively resilient domestic demand.

Prospects for 2026 appear even more favorable. Some forecasts, including those from JPMorgan, point to growth reaching up to 4.4% of GDP. The stated priorities for the coming year are clear: consolidating disinflation, sustainably restoring confidence among households and investors, and maintaining a balance between macroeconomic discipline and support for economic activity.

Foreign investment in 2025: confirmed attractiveness

In 2025, Türkiye continued to attract strong flows of foreign direct investment (FDI), reaffirming its role as an attractive regional hub. Over the first ten months of the year, FDI reached USD 11.6 billion, up 35% compared with the same period in 2024.

These investments originate from a wide range of countries—notably the Netherlands, the United States, Germany, Kazakhstan, and Luxembourg—and are concentrated in key sectors such as manufacturing, trade, information and communication technologies, and agribusiness.

Beyond market size alone, these flows reflect a growing willingness to integrate Türkiye into global value chains, particularly in industries with strong export potential.

A favorable trajectory toward 2026

This momentum is expected to continue in 2026, supported by a clearly articulated public strategy. The Turkish FDI Strategy 2024–2028 aims to increase Türkiye’s share of global investment to 1.5% by 2028, prioritizing high value-added projects, particularly those linked to the digital and green transitions. Turkish authorities also highlight solid structural strengths: a skilled workforce, modern infrastructure, and a strategic geographic position between Europe, the Middle East, and Asia.

Looking ahead

The year 2025 confirms that Türkiye remains a key destination for international investors, despite a complex global macroeconomic environment. The sectoral diversification of investments, the strengthening of international partnerships, and the move upmarket in project quality all point to an economy in transformation.

As 2026 approaches, signals remain broadly positive, with strong growth potential in the structural sectors of the future and gradually strengthening confidence in the country’s economic fundamentals.

Economic & business news from Türkiye

Türkiye records 3.7% growth in Q3 2025

The Turkish Statistical Institute has released Türkiye’s economic growth figures for the third quarter of 2025. Türkiye’s GDP increased by 3.7% year-on-year. The construction sector, with growth of 13.9%, was the main driver of this performance, while household consumption expenditure rose by 4.8%. GDP at current prices in Q3 reached USD 432.88 billion.

Other sectors contributing to growth:

• Financial and insurance activities: 10.8%
• Information and communication: 10.1%
• Taxes on products net of subsidies: 9.6%
• Other services: 7.1%
• Industrial sector: 6.5%
• Trade, transport, accommodation and food services: 6.3%
• Professional, administrative and support services: 4.4%
• Real estate activities: 4.2%
• Public administration, education, human health and social services: 2.1%
• By contrast, the agricultural sector contracted by 12.7%.

Exports of goods and services declined by 0.7% in chained volume terms compared with the previous year, while imports increased by 4.3%.

Türkiye’s economy had recorded growth of 4.8% in Q2 2025 and 2.3% in Q1 2025. As such, the 3.7% expansion reflects an overall solid growth trajectory, with a slight slowdown compared with the previous quarter but economic momentum remaining positive.

Source: Dünya, 1 December 2025

Belgian Titan Group acquires Traçim Cement for USD 190 million

Türkiye’s cement sector continues to attract major international investors. Belgian giant TITAN Group, operating in more than 25 countries and employing 6,000 people worldwide, has announced the acquisition of Traçim Çimento, one of the most dynamic cement producers in the Istanbul region, for USD 190 million.

Why is this acquisition strategic? Because Traçim meets the key criteria sought by a global industry leader:

• A modern, efficient integrated cement plant
• Annual production capacity of 2.5 million tonnes
• Direct access to one of Türkiye’s most active markets: Istanbul
• Export capabilities to neighboring countries and the United States
• An ideal position to support Titan’s regional growth strategy

Thanks to this acquisition alone, Titan expects in 2026 to generate over USD 140 million in revenue and more than USD 50 million in EBITDA. Backed by a strong balance sheet and sharply improving 2025 results (+35% net profit in Q3), Titan reaffirms its status as a global heavyweight, capable of making substantial investments to strengthen its presence in Türkiye.

Already established in the country, where the Group operates a grinding facility as well as a pozzolana quarry, this acquisition reflects Titan’s ambitious expansion of its industrial footprint in the Eastern Mediterranean.

The agreement also includes a potential joint solar power plant project, underscoring Titan’s commitment to long-term growth.

Completion of the transaction is expected in Q1 2026, subject to the usual regulatory approvals.

Source: Investing, 11 December 2025

JYSK accelerates its expansion in Türkiye

JYSK is taking a new step in its growth in Türkiye with the opening of its first store outside Istanbul, in Bursa, in the Marmara region. This inauguration marks the group’s eighth store in the country. Since entering the Turkish market in May 2023, the Danish retailer has rapidly expanded with seven store openings in Istanbul. The launch in Bursa now confirms its ambition to extend its presence to the country’s main regions.

“We are delighted to bring JYSK to Bursa. This opening represents an important milestone in our ambition to make our products accessible to more customers in Türkiye,” said Fatih Tezcan, Country Director of JYSK Türkiye. With footfall and sales levels close to European standards, JYSK plans to double its network to reach 15 stores by August 2026. Upcoming openings will notably target the western coast (Izmir, Aydın, Tekirdağ), areas with strong potential for garden products and the furnishing of summer residences.

This expansion will be accompanied by growth in the local team, which currently employs 120 people and is expected to exceed 200 employees in the coming years. This progression reflects the strong appeal of Scandinavian design in Türkiye and confirms JYSK’s commitment to expanding across the entire Turkish territory.

Source: JYSK, 24 November 2025

Alfa Solar and AstroEnergy partner to develop a mega solar plant

Turkish solar panel manufacturer Alfa Solar Enerji has partnered with Astronergy Europe, a subsidiary of the Chinese Chint Group based in Germany, to establish an integrated production facility for solar cells and wafers in the Balıkesir Organized Industrial Zone, in northwestern Türkiye. The joint venture will be structured with a 50% stake held by Alfa Solar and 50% by Astronergy Europe.

The facility is designed to reach an initial annual capacity of 2.5 GW, starting with ingot slicing. The first phase of the project will require an estimated investment of USD 200 million, with expected support from the HIT-30 program of the Turkish Ministry of Industry and Technology. This program aims to encourage investments in local production of advanced technologies, particularly in strategic sectors, in order to strengthen national industrial capacity by 2030.

According to information available on its website, Alfa Solar currently produces 2.5 million solar panels per year at a facility with 40,000 m² of enclosed production space.

This strategic project seeks to strengthen local production of advanced solar technologies in Türkiye, while also supporting the export of high-tech solar cells.

Source: PV Magazine, 17 November 2025

Ankara to host the country’s largest battery plant

Türkiye is taking a major new step toward energy autonomy and industrial leadership.

Turkish company GO Enerji has announced a major strategic partnership with South Korean giant LG Energy Solution to establish a next-generation battery plant in Ankara, which will become the largest battery module manufacturing facility in the country, according to Gökhan YILDIZ, CEO of GO Enerji.

A structuring investment for Turkish industry

• Initial investment: €45 million
• Total potential: over €1 billion
• Planned capacity: from 2.5 GW to 7.5 GW
• Production: 100% “Made in Türkiye” (GOEN-BESS)
• Jobs created: up to 900 in the long term
• Start of production: Q2 2026

The plant will integrate LG’s advanced “pouch cell” technology, renowned for its durability, performance, and longevity, which will be transferred directly to GO Enerji. All processes will be carried out in Türkiye, in line with LG’s technical and quality standards.

Strategic objectives

• Reduce external dependence in energy storage technologies
• Position Türkiye as an international hub for energy technologies
• Export to Europe, the Middle East, and Africa
• Support the energy transition through a national production ecosystem

Energy storage is a strategic pillar of Türkiye’s energy transition. With this project, Ankara is positioning itself as a key player in the global battery value chain.

Source: Daily Sabah, 1 December 2025

Tromox chooses Türkiye for its first manufacturing plant outside China

Chinese electric motorcycle manufacturer Tromox is taking a major step by selecting Türkiye as the location for its first international production facility, to be established in Nazilli (Aydın). Mass production is set to begin in January 2026, with an ambitious target of 10,000 units sold in the first year.

This decision is driven by the rapid expansion of the Turkish motorcycle market. In 2023, 1.2 million motorcycles were registered. As recalled by Yağız Türkbey Görgülü, co-founder of Tromox Türkiye: “Over the past three years, the number of motorcycles registered in Türkiye exceeds the total of the previous thirty years.” Momentum is particularly strong in the electric segment: the share of electric motorcycles rose from 17% to 30% over the first eight months of 2024. Import restrictions introduced at the end of 2024 have indeed accelerated the shift toward local production.

The future 10,000 m² plant, operated in partnership with Dsign, will start production with the M05 model. Tromox will manufacture the high-strength steel chassis locally, while critical components—the motor and battery—will initially be imported. The objective is to gradually increase the localization rate in order to quickly reach a level compatible with exports.

In the medium term, the brand plans to expand its product range, particularly in the fast-growing segment of electric motocross bikes, with the intention of launching local production as well. Tromox aims to capture 10% of a market of around 100,000 units in its segment alone and is planning an active international expansion.

This investment confirms Türkiye’s position as a major regional hub for electromobility and represents a key milestone in Tromox’s global expansion strategy.

Source: Dünya, 25 November 2025

Watsons opens a second logistics center in Ankara

Watsons, a leading international retailer in beauty, personal care, and wellness products, with more than 15,000 stores in 33 countries, continues to expand its footprint in Türkiye.

Marking 20 years of presence in the Turkish market, Watsons Türkiye has reached a new milestone with the opening of a second distribution center in Ankara.

22,000 m² | Over 200 stores served from day one | 40% of national operations | 100 jobs created

This new logistics hub will enable the company to:

• Accelerate deliveries nationwide
• Strengthen omnichannel operations (retail & e-commerce)
• Optimize supply chain performance

“In 2025, we opened more than 50 stores, reaching 470 points of sale, and we will continue our growth by opening over 200 additional stores over the next three years,” said Mete Yurddaş, General Manager of Watsons Türkiye.

An investment aligned with ESG priorities

The site integrates a solar energy generation system, with the short-term goal of covering 100% of its energy needs, thereby reducing the environmental footprint of operations.

This investment highlights the dynamism of the market and the strong appetite of Turkish consumers for beauty and personal care products, while confirming Türkiye’s strong potential for international players in retail, logistics, and distribution seeking to develop high-performing omnichannel strategies.

Source: Ekonomim, 15 December 2025

Porsche opens a new studio in the heart of Istanbul

Porsche is strengthening its presence in Türkiye with the opening of Porsche Studio Istanbul, an innovative experiential space located in Etiler, at the heart of the Istanbul metropolitan area.

Designed as a living space rather than a traditional showroom, this 680 m², two-level Studio embodies a new vision of urban automotive retail, where purchasing a car becomes a true brand and lifestyle experience.

This project is the result of a collaboration between Porsche AG, Porsche Central and Eastern Europe, and Doğuş Otomotiv (Porsche Türkiye). It clearly illustrates the strategic importance of Türkiye in the brand’s regional development.

With this opening, Porsche Studio Istanbul becomes the 28th active Porsche Studio worldwide and the second in Central and Eastern Europe. “Türkiye plays a strategic role in our regional growth, and this Studio represents a major addition to our presence in one of the most dynamic markets in the region,” emphasized Michael Kirsch.

Why is this a strong signal for the Turkish market?

• Growing attractiveness of Istanbul for international premium brands
• Rapid development of experiential retail concepts
• Acceleration of foreign investment in Türkiye
• A strengthened strategic role between Europe and the Middle East

Highlight of the inauguration: unveiling of the new Cayenne Electric. Presented for the first time in Türkiye, this launch marks a key milestone in Porsche’s electrification strategy and reinforces the role of #Istanbul in the brand’s future vision.

A further illustration of Türkiye’s strategic potential for high value-added international brands.

Source: Porsche Newsroom, 16 December 2025