Turkey in May 2026: the most important developments in economy
Turkey, May 2026: the economic news of the month was dominated by trade between the European Union and the United States, alongside market strain from the Iran war. On May 7 the EU failed to agree on implementing its tariff deal with the US, and President Donald Trump gave the bloc a new deadline, although an EU committee reported progress. On May 20 the EU approved the deal, agreeing to fully implement the customs agreement, which includes an emergency clause, after pressure from Trump. Some in the EU see it as preferable to no agreement.
In Turkey itself, markets moved sharply. The Istanbul Stock Exchange hit a record 15,000 points on May 7, and on May 10 the country extended its ban on short selling of stocks amid volatility. On May 14 Turkey scrapped its inflation target as economic strains deepened, and petrol prices hit an all-time high. On May 18 President Erdogan announced measures to reduce war-driven market stress. Foreign currency sales reached $6 billion after a ruling against the opposition, and Turkey passed a tax amnesty. On May 22 the stock market rebounded and the lira fell after the arrest of Ekrem İmamoğlu and a court ruling against the opposition, and the government worked to calm investors. Turkey's economic confidence index rose in May.
On energy, Italian Foreign Minister Antonio Tajani told Turkish media on May 15 that the Hormuz blockade is a global economic shock. That day Turkey's energy ship began a billion-dollar Black Sea mission and Turkey floated a $1.2 billion fuel pipeline to Eastern NATO allies. Turkey sharply reduced imports of Russian oil, and a new energy roadmap released on May 31 targets 120 GW of combined solar and wind capacity by 2035, while a possible Hormuz closure was reported to strain Turkey's foreign reserves. Istanbul hosted the SAHA 2026 defense fair with 120 countries, and Turkish arms firms reported a surge in demand driven by regional conflicts.
by WorldBrief & Maksim Micheliov | AI-generated summary
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