Key insights
- JPMorgan reduced Turkey's 2026 growth forecast to 3.4% due to the Middle East conflict, citing weakened real sector and consumer confidence. While this directly impacts Turkey, broader geopolitical instability can indirectly affect global markets, including the US, by increasing risk aversion and potentially disrupting supply chains. The impact is limited given Turkey's relatively small influence on the US equity market.
Investing.com -- JPMorgan lowered its economic growth forecast for Turkey in 2026 to 3.4% from 4.0% on Friday, citing the impact of the ongoing Middle East conflict.
The investment bank’s analysts noted that indicators now point to a broad softening in activity since the war began in late February. The real sector confidence index has declined sharply, while consumer confidence has weakened.
JPMorgan’s revised growth projection aligns with the latest International Monetary Fund forecast published last month.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.