Turkish Economy Slows as Trade Deficit Widens

Turkey's economic growth slowed in the fourth quarter of 2025 as the country's trade deficit continued to widen, according to reports from Hellenic Shipping News. GDP growth decelerated to 0.4% quarter-on-quarter in Q4, down from 1.0% in the previous quarter and meeting consensus expectations. On an annual basis, the Turkish economy expanded by 3.4%, compared to 3.8% in Q3. The slowdown was driven by a weakening in consumer spending, which had previously been a key driver of Turkey's economic growth. The quarterly breakdown revealed 'strong consumer spending', but this was offset by a widening trade deficit. 'The quarterly breakdown revealed strong consumer spending, but this was offset by a widening trade deficit,' the Hellenic Shipping News report stated. 'The trade imbalance has been a persistent concern for the Turkish economy in recent quarters.' Analysts have warned that Turkey's large current account deficit leaves the country vulnerable to external shocks and could undermine confidence in the lira. The Turkish currency has already lost significant value against the US dollar over the past year. The slowdown in Q4 capped off a year of moderating growth for the Turkish economy, which expanded by 3.4% for the full year 2025 compared to 4.2% in 2024. Headwinds such as high inflation, rising interest rates, and geopolitical tensions have all weighed on the country's economic performance. Looking ahead, analysts will be closely watching whether Turkey can rein in its trade deficit and regain momentum in 2026. The health of the Turkish economy is a key consideration for the global maritime industry, which has significant trade ties with the country.