IMF Raises Türkiye's Economic Growth Forecast for 2023
Date
4/12/2023 3:17:18 AM
(MENAFN) The International Monetary Fund (IMF) has revised its economic growth forecast for Türkiye, raising it to 3.6 percent for next year, which is 0.6 percentage points higher than the previous projection made in January. However, the IMF has lowered Türkiye's economic growth forecast for this year to 2.7 percent from 3 percent.
The IMF's revised economic growth projections for the US estimate that the American Economy will expand by 1.6 percent this year and 1.1 percent next year. These figures are up from the previous projections made in January, which estimated growth rates of 1.4 percent and 1 percent, respectively.
The IMF's report also highlights the US banking crisis, noting that "a silver lining is that the banking turmoil will help slow aggregate activity as banks curtail lending in the face of rising funding costs and of the need to act more prudently." The report also mentions that the fast rise in policy rates is causing side effects, as banking sector vulnerabilities have come into focus and fears of contagion have risen across the broader financial sector, including nonbank financial institutions.
While Türkiye's economic growth forecast for this year has been lowered, the increase in forecast for 2023 suggests that the country's economy is expected to recover in the coming year. The IMF's revised projections for the US indicate that the country's economy is also expected to grow at a faster pace than previously anticipated.
Overall, the IMF's report suggests that the global economy is recovering, but challenges remain. Policymakers must remain vigilant and take appropriate measures to address economic vulnerabilities and ensure sustained growth.
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