In the analysis in the Global Economic Prospects Report published in June, the World Bank stated that while the global economic growth was 3.1 percent last year, it will decline to 2.1 percent this year. According to the Bank’s report, it was noticed that Turkey diverged positively from this forecast.
While the World Bank’s growth forecast for the Turkish economy was 2.7 percent at the beginning of this year, it was stated that the economy remained resilient in the first quarter as the reason for raising it to 3.2 percent.
4.1 PERCENT GROWTH EXPECTED IN 2025
In the report, it was reported that the Turkish economy is expected to grow by 3.2 percent this year, 4.3 percent next year and 4.1 percent in 2025.
The World Bank predicted that the Turkish economy would grow by 2.7 percent in 2023 and by 4 percent in 2024, in its forecasts published in January.
TURKISH ECONOMY STATED RESISTANT IN THE FIRST QUARTER OF 2023
Reminding that Turkey was shaken by two major earthquakes at the beginning of February, the report stated that the direct loss of these earthquakes is estimated to be 4 percent of 2021 GDP, and the cost of rescue and rebuilding could be twice as high. Reconstruction efforts are expected to bolster investment, the bank’s report said.
Pointing out that the development of macroeconomic policies is uncertain on the backdrop of high inflation, the report stated that high current account deficit and low net foreign exchange reserves pose significant challenges as well as the depreciation in the exchange rate.
In the report, it was emphasized that despite all these headwinds, Turkey continued to contribute significantly to the growth of the Europe and Central Asia region and its economy remained resilient in the first quarter of 2023.
GLOBAL “SHARP” SLOWING IN GROWTH CURVE
Pointing out that global economic growth has slowed down sharply, the report stated that the risk of financial stress has increased in emerging market and developing economies due to rising global interest rates.
In the report, it was noted that the global economic growth, which was 3.1 percent in 2022, is expected to decline to 2.1 percent this year.
In the report, which stated that the world economy is expected to grow by 2.4 percent next year, it was reported that this rate is predicted to be 3 percent in 2025.
In its January forecasts, the World Bank had predicted that the global economy would grow by 1.7 percent this year and 2.7 percent next year.
US GROWTH DATA ALSO SIGNIFICANT TO SLOW
Emphasizing that the growth in developed economies is expected to decrease from 2.6 percent in 2022 to 0.7 percent this year, it is estimated that this rate will remain weak with 1.2 percent in 2024 and will be 2.2 percent in 2025. transferred.
In the report, it was noted that the US economy, which is included in the group of developed countries, is expected to grow by 1.1 percent in 2023 and the growth is expected to decline to 0.8 percent in 2024 with the continued impact of the sharp increase in interest rates. In the report, it was stated that the US economy is expected to grow by 2.3 percent in 2025.
In its January forecasts, the World Bank had predicted that the US economy would grow by 0.5 percent in 2023 and 1.6 percent in 2024.
In the report, it was stated that the economic growth in the Euro Area is expected to decline from 3.5 percent in 2022 to 0.4 percent in 2023 with the lagged effect of the tightening in monetary policy and the increases in energy prices. It was noted that the Eurozone economy is expected to grow by 1.3 percent in 2024 and by 2.3 percent in 2025.
In the bank’s forecasts in January, the growth expectation for the Eurozone economy was 0 percent for 2023 and 1.6 percent for 2024.
GROWTH ESTIMATE OF THE CHINESE ECONOMY RISES
In the report, it was stated that the growth in emerging market and developing country economies is expected to increase from 3.7 percent last year to 4 percent this year, and this rate is expected to be 3.9 percent in 2024 and 4 percent in 2025.
It was noted that the Chinese economy, which is in the group of emerging markets and developing countries, is expected to grow by 5.6 percent this year, 4.6 next year and 4.4 in 2025.
The World Bank predicted in January that the Chinese economy would grow by 4.3 percent in 2023 and 5 percent in 2024.