IMF increases growth forecast for Turkey’s economy in 2024 to 3.6 percent
Date
7/17/2024 3:54:33 AM
(MENAFN) The International Monetary Fund (IMF) has updated its growth forecast for the Turkish Economy in 2024, increasing it to 3.6 percent. This adjustment marks a notable rise of 0.5 percentage points from the previous estimate of 3.1 percent, which was provided in April. However, looking ahead to 2025, the IMF has revised its expectations downward, reducing the growth forecast from 3.2 percent to 2.7 percent. This adjustment reflects broader trends observed in global economic conditions.
In a broader context, the IMF has also made revisions to its forecasts for the American economy. The growth estimate for 2024 has been slightly decreased from 2.7 percent to 2.6 percent. The outlook for 2025, however, remains unchanged at 1.9 percent. The report indicates that growth in the United States is expected to slow, driven by a cooling labor market and moderating consumption, alongside a gradual tightening of fiscal policy. By the end of 2025, the IMF projects that growth will align more closely with potential output, effectively closing the existing positive output gap.
Turning to the euro area, the IMF anticipates a growth rate of 0.9 percent for this year, which represents an upward revision of 0.1 percentage points from earlier projections. This improved forecast is attributed to a stronger momentum in the services sector and unexpectedly high net exports observed during the first half of the year. Looking ahead to 2025, the growth rate for the euro area is expected to rise to 1.5 percent.
In Japan, the IMF has revised its growth forecast for 2024 downward, now estimating it at 0.7 percent, a reduction of 0.2 percentage points from the prior estimate of 0.9 percent. This downward revision is largely attributed to temporary supply disruptions and weak private investment experienced in the first quarter of the year. Nonetheless, the growth estimate for Japan in 2025 remains stable at 1 percent.
Finally, regarding China, the IMF has noted a significant rebound in domestic consumption, which has contributed positively to the economy in the first quarter of this year. Additionally, there has been a temporary surge in exports that has been linked to a resurgence in global demand from the previous year. As a result, the growth forecast for China's economy has been revised upward to 5 percent for 2024, an increase from the previous estimate of 4.6 percent. This adjustment reflects the robust recovery in private consumption and strong export performance observed early in the year.
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