Key Developments in Turkey on August 29, 2025

ISTANBUL - Turkey witnessed significant political, economic and defense-related announcements on Friday, August 29, 2025.

President Recep Tayyip Erdoğan hailed the delivery of the domestically developed “Steel Dome” air defense system to the Turkish Armed Forces, marking a major milestone in Ankara’s push for self-sufficiency in defense technology. The system-comprising 47 vehicles valued at $460 million-was handed over at ASELSAN’s headquarters, and Erdoğan described it as “a turning point for Turkey’s air defense capabilities”.

Turkish Foreign Minister Hakan Fidan informed parliament that Turkey is ready to fulfil its obligations in the Russia-Ukraine settlement process following a phone call with U.S. Secretary of State Marco Rubio. He also highlighted the urgent need to improve the humanitarian situation in Gaza through a ceasefire.

Economic indicators painted a mixed picture:

• A Reuters poll projected Turkey’s second-quarter GDP growth at 4.1%, below official forecasts, and full-year 2025 growth at 2.9%.
• Monthly inflation for August was expected to slow to 1.79%, with the annual rate dipping to 32.6%.
• Unemployment remained in single digits for the 27th consecutive month, falling to 8.0% in July, driven by gains in female and youth employment.

In response to the Gaza conflict, Fidan announced that Turkey has barred Israeli vessels from its ports, prohibited Turkish ships from docking in Israel, and closed its airspace to Israeli aircraft as part of its condemnation of ongoing Israeli military operations.

These developments underscore Ankara’s focus on bolstering national defense, navigating complex diplomatic engagements, and managing persistent economic challenges.