(MENAFN- AzerNews) The World Bank revised up its Turkish economic growth
expectations for 2023 and 2024, according to its Global Economic
Prospects June report released Tuesday, Azernews reports via
anadolu agency .
The Turkish economy is now forecast to grow 3.2% this year and
4.3% next year, up 0.5 and 0.3 percentage points, respectively,
from previous projections.
The international financial institution, in its January report,
was previously expecting the Turkish economy to grow 2.7% in 2023
and 4% in 2024.
The latest projections have Turkiye's economy growing 4.1% in
"Turkiye was hit by two major earthquakes in early February,
with direct losses estimated at 4 percent of 2021 GDP. However, the
full costs of recovery and reconstruction could be twice as high,"
said the report.
"The evolution of macroeconomic policies is uncertain against
the backdrop of high inflation, which has been met with further
interest rate cuts by the central bank, alongside the general
elections that took place last May," it said.
It stressed that exchange rate depreciation, high current
account deficit, low net foreign exchange reserves and high
inflation present significant challenges for Turkiye.
Despite the headwinds the Turkish economy remained resilient in
the first quarter as Turkiye remains a key contributor to the
growth of Europe and Central Asia, it said.
While domestic demand remains a key driver for the Turkish
economy's growth, the revised projections are partly a result of
positive momentum from strong growth recorded in late 2022 and
additional government support to households, according to the
Reconstruction efforts from the earthquakes are also expected to
support investment, it added.
The World Bank also noted that Russia's imports from Turkiye
more than doubled last year.
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