Turkey & Eurasia Business — 2026-08-31

Türkiye’s economy expanded by 2.3% year-over-year in the second quarter of 2026, defying tight monetary policy and regional geopolitical tensions. Meanwhile, the startup ecosystem gained momentum with the emergence of a new unicorn, HubX, bringing the total count of "Turcorns" to eight, just ahead of the inaugural GITEX Ai Türkiye summit in Istanbul.

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Türkiye Q2 GDP Grows 2.3% as Startup Ecosystem Hits Eight Unicorns

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Key Highlights

• GDP Growth: Official data released on August 31 showed that Türkiye's GDP grew by 2.3% year-over-year in the second quarter of 2026. The expansion occurred despite a sharp slowdown in domestic demand driven by tight monetary policy and the impact of the Iran war.
• New Unicorn: The number of Turkish unicorns, locally known as "Turcorns," has risen to eight after AI-focused technology company HubX reached a valuation of $1.2 billion.

  

• Currency Update: The USD/TRY exchange rate rose to 48.2556 on August 31, 2026, marking a 0.05% increase from the previous session. Over the past month, the Turkish Lira has weakened by 1.53%, and is down by 17.46% over the last 12 months.
• GITEX Ai Türkiye: Rising startups and investors from across Asia, Africa, Europe, the Americas, and the Middle East are set to converge in Istanbul for the inaugural GITEX Ai Türkiye on September 9–10 at the Istanbul Expo Centre. The event aims to bridge startup ecosystems across continents.

  

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Analysis

The most significant business development this week is the resilience of Türkiye's macroeconomic performance alongside its accelerating tech sector. The 2.3% Q2 GDP growth indicates that the economy is holding up despite significant headwinds, including tight monetary policy and external geopolitical shocks. This macroeconomic stability provides a backdrop for the tech sector's expansion, evidenced by HubX reaching a $1.2 billion valuation. The convergence of these two stories—steady traditional economic growth and high-growth tech innovation—positions Türkiye as a key emerging market hub for the latter half of 2026.

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What to Watch

• September Economic Data: The coming weeks will be packed with key data releases for the Turkish economy, along with a new economic road map expected in September.
• Lira Volatility: Investors are monitoring the Turkish Lira closely, which has weakened 17.46% over the last 12 months. Forecasts suggest that while structural weaknesses remain, successful implementation of current monetary frameworks could slow depreciation rates through 2030.