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Country

Turkey TUR

CBRT

Middle East
48.8
composite credibility
-0.4
7-day

score date 2026-08-26

Seven dimensions

Credibility gap40.0

IMF / national CPI · as of 2026-06-01 · coverage: gold

Behind the curve78.7

BIS policy rates + CPI · as of 2026-08-14 · coverage: gold

Communication54.5

Central-bank statements · as of 2026-08-26 · coverage: gold

Geopolitical44.5

GDELT · as of 2026-08-26 · coverage: gold

Growth37.3

World Bank WDI / IMF WEO · as of 2026-08-26 · coverage: gold

Liquidity43.1

IMF BOP / BIS / FRED · as of 2026-08-26 · coverage: gold

Governance37.5

World Bank WGI · as of 2026-08-26 · coverage: gold

Turkey sovereign credibility, in brief

Turkey scores 48.8 out of 100 on the composite sovereign credibility index — credibility band 35–50. That ranks it 10 of 10 in Middle East, the 10th percentile of the region. The score has fallen 0.4 points over the past seven days. CPI -89.2% vs 5.0% target (-94.2pp) — well below target | credibility under pressure (49/100).

As of 2026-08-26 · scored daily from public data under methodology v4

Executive summary

written 23 Aug · score 26 Aug

Turkey's central bank credibility is under severe strain, with inflation 94pp above target and policy rates defensive at 37%, positioning the CBRT as the region's worst performer amid mounting geopolitical volatility.

  • Composite score: 49.2/100 signals moderate institutional credibility, ranking dead last in Middle East peer group (10th of 10).
  • Inflation disconnect: CPI at -89.2% vs 5.0% target creates a 94.2pp credibility gap—the primary risk vector for TRY stability.
  • Policy behind curve: 37.0% policy rate suggests CBRT is playing catch-up rather than forward-guiding through disinflationary cycle.
  • Geopolitical drag: 44.2/100 pressure score reflects municipal corruption, internal security incidents, and regional proxy tensions clouding policy autonomy.
  • Communication weakness: 54.5/100 stance indicates unclear forward guidance and mixed messaging on commitment to 5% target.
  • Watch: Near-term TRY weakness likely if inflation data fails to converge toward target in next 6-8 weeks.

Peer context

Rank 10/10 in Middle East · 10th percentile

Region avg 55.9 · best 62.9 · worst 48.8

Ranked either side

90-day trend

min 16.9max 50.3latest 48.8
2026-05-292026-08-26

External pulse

Port trade momentum, 30d YoY
-12.0%
as of 2026-08-27
Commodity terms-of-trade, 12m change
-1.0%
as of 2026-08-27
Electricity demand, YoY
-5.9%
as of 2026-05-01
Industrial production, YoY
-0.3%
as of 2026-05-01

Sources: Kpler; UN Global Platform; IMF PortWatch (portwatch.imf.org) · Terms-of-trade: IMF Commodity Terms of Trade · Electricity: Ember (CC BY 4.0) · Industrial production: Eurostat, © European Union (CC BY 4.0)

Key indicators

External & activity

Current account (% GDP)-0.8%2024-12-31World Bank
Electricity demand (TWh)26.22026-05-01Ember
FDI inflows (% GDP)0.9%2024-12-31World Bank
GDP growth, annual3.6%2025-12-31World Bank
Geopolitical risk0.62026-07-01GPR (Caldara–Iacoviello)
Industrial production index (2021=100)110.82026-05-01Eurostat
Nightlights radiance (monthly sum)7.5M2025-12-01World Bank / NASA Black Marble
Nightlights radiance, YoY0.3%2025-12-01derived
Remittances (% GDP)0.1%2024-12-31World Bank
Reserves (months of imports)4.7 mo2024-12-31World Bank
Retail sales volume index (2021=100)206.22026-05-01Eurostat
Retail sales volume, YoY14.7%2026-05-01Eurostat
Trade openness (% GDP)49.9%2025-12-31World Bank
Unemployment rate8.5%2025-12-31World Bank
Unemployment rate (ILO)8.3%2025-12-31ILO

Structure

External debt (% GNI)39.4%2024-12-31World Bank
GDP per capita (USD)$18,5992025-12-31World Bank
Government debt (% GDP)26.6%2024-12-31World Bank
Labor force participation53.5%2025-12-31ILO
WGI: control of corruption-0.62024-12-31World Bank
WGI: government effectiveness-0.12024-12-31World Bank
WGI: political stability-1.02024-12-31World Bank
WGI: regulatory quality-0.22024-12-31World Bank
WGI: rule of law-0.82024-12-31World Bank
WGI: voice & accountability-1.12024-12-31World Bank

Eurostat, © European Union (CC BY 4.0) · Nightlights: World Bank / NASA Black Marble VIIRS (CC BY 4.0)

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