BERLIN

Türkiye has distinguished itself among other OECD countries with a resilient fiscal discipline thanks to its low public debt and surging gold reserves, amid global discussions on debt sustainability and record gold reserve increases this year.

Developed and developing countries, especially Japan, China, Italy, the US, and France, are looking for ways out of their massive debt burdens exceeding their economic output.

Japan in particular tops the list at a 237% debt-to-GDP (gross domestic product) ratio with interest payments exceeding $200 billion in its 2026 budget.

The US’ public debt to GDP ratio reached 124%, while Canada’s rate stands at 113%, France at 111.7%, and Italy at 137.8%.

However, Türkiye’s public debt to GDP ratio stood at 24.6% as of the latest data from the Turkish Treasury and Finance Ministry, well below the EU’s Maastricht criteria of 60% and the OECD average.

Türkiye’s net public debt to GDP ratio also fell to 18.2%, which further confirms its capacity to cover liabilities without excessive borrowing.

Amid the global gold purchases, the US boasts the world’s largest gold reserves with 8,133.5 tons, which makes up around 79% of its total reserves, according to the World Gold Council (WGC).

Germany is the world’s second largest in gold reserves with 3,350.3 tons, followed by Italy with 2,451.8 tons and France with 2,347 tons.

Russia has been making some de-dollarization efforts for its reserves in recent years and it has accumulated 2,333 tons so far, while China has 2,306 tons of gold in its reserves.

The US remains the world leader in gold reserves but Türkiye’s rapid acquisition strategy allowed the country to climb back, as its gold reserves reached 641.3 tons, according to data from the Turkish Central Bank (TCMB) -- this places Türkiye just behind giants like Japan and India, ranking as the world’s 10th largest gold holding country.

These official gold holdings are valued at around $134 billion, pushing Türkiye’s total gross reserves over the $200 billion threshold.

Türkiye’s strategic gold accumulation extends to the public, as TCMB Governor Fatih Karahan estimates that households hold nearly $600 billion worth of gold in what is colloquially called “under the mattress.”

Karahan said in a recent statement by the bank that the recent spikes in global gold prices generated a wealth effect of around $200 billion on these private assets over the last year alone.

Economists say Türkiye’s recent economic stability is the fruit of laws enacted after 2001, specifically the Law No. 4749 -- this structural “armor” has made Türkiye one of the most resilient economies among the OECD during the 2026 global debt crisis.

The Golden Age of 2002-2012 was a period of fiscal discipline and banking reforms, and Türkiye grew during this period not only by borrowing but also by becoming an efficient economy, which led its debt to national income ratio to decline and the country to see a path of real growth.

⁠Türkiye has focused on prioritizing budget discipline rather than a debt-based structure, unlike many developed economies.

Türkiye’s fiscal stability is supporting broader economic expansion, and the OECD projects the country to rise among its top four fastest-growing members.

The OECD estimates the Turkish economy will grow 3.6% in 2025 and 3.4% in 2026.

*Writing by Emir Yildirim in Istanbul