IMF Raises Growth Forecasts for the Turkish Economy

Positive Growth Outlook for Turkey from the IMF

International Monetary Fund (IMF) announced that it has raised its economic growth forecast for Turkey for 2023 to 4.2%. In the projections made last October, this rate was set at 3.7%. In addition to Turkey, global economic growth forecasts have also been revised upward, rising to 3.3%.

Dynamic Changes in the Global Economy

In its January issue of the World Economic Outlook Report, the IMF indicated that the current economic dynamics are balanced by technology investments and financial support. The report emphasized that investments in innovative technologies such as artificial intelligence have mitigated the adverse effects of trade policies. It is expected that global economic growth will remain around 3.2% in 2025 and beyond.

A Landscape Filled with Risks and Uncertainties

Although growth forecasts have improved, the outlook is described as having downward risks. Changes in expectations for productivity gains related to artificial intelligence could lead to decreased investment and sudden corrections in the markets. It is stated that inflation forecasts have remained largely similar compared to last October's report, but a decline to 4.1% in 2025 is expected to be followed by drops to 3.8% and 3.4%.

Turkey's Economic Wealth and Situation

Turkey's growth forecast for 2024 has been set at 4.1%. Additionally, it has been emphasized that high budget deficits and rising public debt in the country could put financial conditions under pressure by having a negative effect on long-term interest rates. The forecasts for the US and EU economies have also been revised upward to 2.4% and 1.3%, respectively.

Growth Forecasts for Notable Countries

In addition to the growth forecasts it hosts, the growth forecast for the Chinese economy has been raised to 4.5% for 2023, while it has been lowered to 4% for the following year. On the other hand, the Indian economy is expected to grow by 6.4% this year.