The escalating conflict in the Middle East is placing mounting pressure on Turkey’s economy, tightening financial conditions, accelerating reserve losses, and increasing inflation risks. While growth remains resilient for now, the outlook for 2026 is increasingly fragile as policymakers face difficult trade-offs between stability and expansion. Tightening Financial Conditions and Reserve Pressures The regional conflict … Continue reading Middle East War Pressures Turkey’s Economy: Growth Risks Rise as Inflation Outlook Deteriorates