Azernews.Az

Ulviyya Poladova

Read more

The "Turkic Economic Review" for the first half of 2026 (January–June, No. 2), prepared in eight languages by the Center for Analysis of Economic Reforms and Communication (CAERC) in cooperation with the Secretariat of the Organization of Turkic States (OTS), has been published.

According to CAERC, the review, prepared by its Turkic World Research Center, analyzes economic indicators for the first half of 2026 in OTS member states - Azerbaijan, Kazakhstan, Kyrgyzstan, Türkiye and Uzbekistan - as well as observer members Hungary, Turkmenistan and the Turkish Republic of Northern Cyprus (TRNC). Based on the latest economic data, the publication assesses the potential of Turkic states and their impact on the global economy.

In the first half of 2026, Turkic states accounted for 2.11% of the global economy, with a combined GDP of $1.33 trillion. Their population reached 178.8 million, representing 2.8% of the world's population. These figures highlight the region's significant economic and demographic presence.

During the reporting period, Turkic states recorded combined GDP growth of 5.86%, outpacing the global growth rate of 1.51%, according to the review. Kyrgyzstan, Uzbekistan and Turkmenistan posted growth rates of 11.9%, 8.5% and 6.3%, respectively, supported by continued development in industry and agriculture. Economic growth reached 6% in the TRNC and 4.1% in Kazakhstan. Türkiye, the largest economy in the organization, recorded growth of 2.5%, while Azerbaijan's GDP grew by 0.8%.

Trade turnover plays an important role in both global integration and economic ties among OTS countries. In the first half of 2026, the total trade turnover of OTS member states amounted to approximately $679.7 billion, representing around 3.58% of global trade turnover, estimated at $18.96 trillion.

Türkiye led in trade turnover at $325.036 billion, followed by Hungary at $187.905 billion, Kazakhstan at $71.7918 billion, Uzbekistan at $41.0112 billion and Azerbaijan at $26.0542 billion.

Sustained export growth in agriculture and industry was observed in Kyrgyzstan, the TRNC, Uzbekistan, Kazakhstan, Türkiye, Turkmenistan and Azerbaijan. These figures reflect differing trade dynamics across the region and highlight the benefits of strong export performance among Turkic states.

In the industrial sector, Kyrgyzstan and Uzbekistan led with growth rates of 12.7% and 8%, respectively. Industrial output also increased by 6.7% in the TRNC and 3.3% in Kazakhstan. The growth was supported by large-scale manufacturing and infrastructure projects. Industrial growth reached 2.7% in Turkmenistan and 2.1% in Hungary.

Türkiye recorded the strongest growth in agriculture, at 10%. The sector expanded by 6.2% in the TRNC, 4.7% in Uzbekistan, 4.4% in Kazakhstan, 4.3% in Kyrgyzstan, 2.2% in Azerbaijan and 2% in Turkmenistan.

Investment in fixed capital remains a key driver of long-term economic growth. In the first half of 2026, Kyrgyzstan and the TRNC recorded increases of 64.3% and 43.77%, respectively, in fixed-capital investment, supported by substantial investment in infrastructure, energy and manufacturing. Uzbekistan, Azerbaijan, Kazakhstan and Hungary also reported increases of 17.5%, 13.8%, 9.6% and 7.4%, respectively, reflecting positive investment trends and improvements in the business environment.

The banking sector in Turkic states also recorded significant growth during the reporting period. Total banking assets increased by 55.9% in Kyrgyzstan, 38.81% in the TRNC, 32.9% in Türkiye, 25.7% in Uzbekistan, 14.4% in Kazakhstan and 10.2% in Hungary. Azerbaijan's banking sector posted more moderate growth of 7.4%. These trends point to the expanding role of financial services in supporting economic activity and investment.

Government budget performance was another important indicator examined in the review. Uzbekistan recorded increases of 43.7% in budget revenues and 51.5% in expenditures. In Kyrgyzstan, revenues rose by 48.8% and expenditures by 41.3%. The TRNC posted growth of 40.75% in revenues and 34.66% in expenditures, while Türkiye recorded increases of 39.4% and 31.8%, respectively. Kazakhstan and Hungary also reported steady growth in both revenues and expenditures.

Overall, the review highlights that Turkic states outperformed global growth rates in terms of GDP expansion and achieved substantial trade turnover and investment growth during the first half of 2026.