The "Turkish Economic Review" Q2 2025 edition has been published

07 October 2025, 09:39

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The Turkic World Research Center, operating under the Center for Analysis of Economic Reforms and Communication, in cooperation with the Organization of Turkic States presents the latest edition of the Turkic Economic Outlook for the 2nd quarter of 2025 in 8 languages.

The second quarter of 2025 has seen continued robust economic performance in the Turkic States region, with the collective GDP growth rate for OTS countries reaching 5.4%, more than double the global growth rate of 2.3% and a total GDP of USD 1 trillion 112.6 billion, according to the latest Turkic States Quarterly Economic Outlook. This report outlines key economic trends, fiscal developments, and the ongoing transformations in the region's green energy and digital sectors.

The OTS region’s economic growth remains strong, driven by robust investments in infrastructure, energy diversification, and digital innovation. Kazakhstan, Turkmenistan, and Uzbekistan reported GDP growth rates of 6.2%, 6.3%, and 7.2%, respectively, while Cyprus also demonstrated strong economic performance with a growth rate of 6.4%.". Kyrgyzstan emerged as a standout performer with an exceptional 11.7% growth rate. Azerbaijan, amid its ongoing economic diversification efforts, achieved a modest 1.5% growth, while Türkiye faced external challenges yet recorded a stable 3.6% growth. Hungary experienced modest growth of 0.1% in the digital and green sectors.

Despite global trade growth slowing to 1.7% in the first half of 2025, OTS countries maintained a solid presence in international trade, with a 4.2% share of global trade turnover, reaching USD 701.6 billion. Azerbaijan and Kazakhstan continued to experience challenges, with exports slightly declining. However, both nations maintained trade surpluses, with Azerbaijan’s surplus amounting to USD 920 million and Kazakhstan’s reaching USD 7.68 billion. Uzbekistan’s exports surged by an impressive 29.1%, driven by textiles, minerals, and agriculture.

The first half of 2025 also highlighted significant fiscal strides. Kazakhstan and Türkiye saw notable increases in public revenues. Growth was mostly driven by hydrocarbon revenues, tax reforms, and infrastructure financing. Kazakhstan’s public revenue surged by 17.6% to USD 28.45 billion, while Türkiye’s revenues reaching USD 149.58 billion. Azerbaijan posted a 5.1% increase in public revenues, totaling USD 11.65 billion, primarily driven by non-oil sector development.

The transition to a green and digital economy remains a priority for OTS countries. Kazakhstan committed USD 3.2 billion for renewable energy projects, including solar and wind power, while Uzbekistan raised USD 1 billion through green bonds to fund sustainable infrastructure. Azerbaijan is accelerating its investments in green energy and digital infrastructure, with a particular focus on smart governance and e-government services.

Digital transformation also remains high on the agenda, with Kazakhstan’s digital economy accounting for 9.2% of its GDP, and Türkiye making strides in smart city initiatives. Azerbaijan has launched a transformative smart growth project in the liberated territories of Eastern Zangazur and the Garabakh Economic Zones, with a commitment to developing smart cities and villages.

Looking forward, OTS countries are expected to continue focusing on investment-driven growth, particularly in green technologies, digital infrastructure, and non-oil sectors. The development of the Middle Corridor remains a critical strategic focus, strengthening trade connectivity between Asia and Europe. Regional cooperation within the OTS framework will be vital for enhancing competitiveness, sustainability, and technological innovation across Eurasia.

The second half of 2025 offers a promising outlook for the OTS region, with a clear emphasis on regional integration, green energy, and digital transformation. The Turkic States are positioned to lead in both sustainability and innovation, making significant strides toward becoming a global powerhouse in these areas.