Growth, inflation, global trade volume ecpectations from the “World Economic Situation and Prospects as of mid-2026” Report (the Report), published by the United Nations Department of Economic and Social Affairs in May 2026, are briefly summarized below

1- The Global Economy is expected to grow by 3.1% and 3.2% in 2026 and 2027, respectively, while the Turkish Economy is expected to grow by 3.4% and 3.5%:

According to the report, the global economy is going through a difficult period as the crisis in the Middle East is overshadowing growth expectations, increasing inflationary pressures, and heightening uncertainty in financial markets.

Resilient labor markets and AI-driven trade and investment are supporting global economic activity; however, it is unlikely that they will fully offset widespread negative factors.

The outlook is more challenging for developing economies that import fuel and food; in these countries, rising import costs carry the risk of widening budget deficits, deteriorating trade balances, and increasing food insecurity.

Global economy: While it is projected to grow by 3.0% in 2025, it is expected to grow by 2.5% in 2026 and 2.8% in 2027. These projections are 0.2 percentage points lower for 2026 and 0.1 percentage points lower for 2027 compared to the January 2026 WESP projections.

Advanced Economies: While growth is projected to be 1.7% in 2025, it is expected to be 1.5% in 2026 and 1.7% in 2027. These projections are 0.1 percentage points lower for 2026 and 0.1 percentage points lower for 2027 compared to the January 2026 WESP projections.

Developing economies: While they are projected to grow by 4.6% in 2025, they are expected to grow by 3.9% in 2026 and 4.3% in 2027. These projections are 0.3 percentage points lower for 2026 and unchanged for 2027 compared to the January 2026 WESP projections.

Euro Area: While growth is projected to be 1.4% in 2025, it is expected to be 0.9% in 2026 and 1.2% in 2027. These projections are 0.2 percentage points lower for 2026 and 0.2 percentage points lower for 2027 compared to the January 2026 WESP projections.

Turkish Economy: While it is projected to grow by 3.7% in 2025, it is expected to grow by 3.9% in 2026 and 4.1% in 2027. (January 2026 WESP projections)

2- Global inflation is projected to rise again, reaching 3.9% in 2026:

Global inflation is projected to rise again, reaching 3.9% in 2026, before falling to 3.1% in 2027 (0.8 and 0.2 percentage points higher than the January forecasts, respectively)

In advanced economies, inflation is projected to rise from 2.6% in 2025 to 2.9% in 2026; this represents a 0.5-percentage-point upward revision from the January forecast

Developing economies; inflation is projected to rise from 4.2% in 2025 to 5.2% in 2026 (1.3 percentage points higher than forecast in January)

Türkiye; inflation for 2026 is projected to be 22.4%

3- Global trade volume is projected to grow by 2.7% and 3.2% in 2026 and 2027, respectively:

Global trade growth is projected to slow to 2.7% in 2026, following an exceptionally strong 5.0% increase in 2025. Last year’s growth was driven by shipments brought forward ahead of U.S. tariff hikes, strong demand for AI-related products, and robust trade in durable goods. The conflict in the Middle East has heightened uncertainty regarding the outlook for global trade volumes