“ Türkiye ranks an estimated fourth place in Europe for machinery exports and is a powerhouse of industrial machinery and related technology production.”
Türkiye, an upper middle-income country, is a founding member of the OECD and G20. Bridging the two continents of Europe and Asia, the country enjoys a large tourism industry and is among the world’ s leading producers of motor vehicles, consumer electronics, home appliances and defence products. The country also recently entered a new phase in its digital transformation journey with the activation of fifthgeneration( 5G) mobile communication infrastructure.
With a population of more than 85 million, Türkiye has become an important manufacturer of industrial machinery and production technologies. Ratified in 1995, the European Union – Turkey Customs Union has established a free trade area between Turkey and the European Union, which has increased bilateral foreign trade, investment and economic activity.
In April 2026, a“ Powerhouse for Investments in the Türkiye Century” programme was announced by the Turkish government. This is a comprehensive policy framework designed to reinforce the country’ s competitiveness in attracting international capital, talent and high-value production. The programme is designed to outline structural reforms and incentive mechanisms aimed at strengthening the investment climate, while providing a more predictable and transparent framework for longterm investors.
Vice President Yılmaz has emphasized that“ Türkiye is increasingly emerging as a central hub for production, trade and distribution supported by its strong industrial capacity, advanced logistics infrastructure and deep integration into global value chains.”
Minister Şimşek presented the reform agenda as a comprehensive economic positioning strategy, noting that 2026 has been designated as a“ year of reform” with a focus on industrial transformation, digitalisation, infrastructure investments and governance improvements. The package introduces a more competitive tax architecture aimed at boosting export capacity, attracting high-value investments and supporting Türkiye’ s ambition to become a regional financial and trade hub.
IMF Article IV Consultation
AN INDUSTRIAL EDGE
We highlight economic, manufacturing and production trends in Türkiye as well as its new reform agenda for growth and investment.
TURKIYE
On 13 February 2026, the Executive Board of the International Monetary Fund( IMF) concluded its Article IV consultation with Türkiye.
“ Since the 2024 Article IV, Türkiye’ s disinflation programme has shown successes. Inflation fell from 49.4 per cent( y / y) in September 2024 to 30.9 per cent in December 2025 on the back of strong fiscal consolidation, prudent income policies and a tight monetary policy stance. Following a temporary deceleration in mid-2024, GDP growth has remained strong, forecast at 4.1 per cent in 2025. Lira demand has strengthened, bolstering international reserves, and the current account deficit remains adequately financed,” commented the IMF.
The current policy mix, it said, continues to balance disinflation with steady growth. Tight monetary policy, moderate wage growth and broadly neutral fiscal policy are expected to support gradual disinflation. End-2026 inflation is expected at 23 per cent( y / y), as domestic demand remains strong. Boosted by further policy rate cuts and rising confidence, growth is expected at 4.2 per cent for 2026.
“ While growth should remain solid and inflation will fall, this approach bears risks and costs. External risks remain elevated due to persistent global trade uncertainty and regional conflicts. The materialisation of an adverse shock, like an increase of energy prices or a negative weather event, could further extend the period of still-high inflation. Moreover, the gradual approach to disinflation has weighed on the financial sector and slowed productivity growth,” cautioned the IMF.
IMF Directors stressed the need for a tighter macroeconomic policy mix combined with ambitious structural reforms to entrench disinflation, further strengthen external buffers and support inclusive
34 | ismr. net | ISMR June 2026