IMF lifts 2015 GDP growth forecast for Turkey to 3.4% from 3%

By bne IntelliNews February 6, 2015

The Turkish economy is expected to grow by 3.4% this year, the IMF said in a note prepared by its staff for February 9-10 G-20 finance ministers and central bank governors meeting in Istanbul. In its October 2014 World Economic Outlook Report, the Fund had forecast a 3% GDP growth for Turkey. The Fund, however, slashed its 2016 GDP growth forecast to 3.4% from a previous 3.7%. 

Some economies, such as Turkey, that rely heavily on private external financing will need to proactively further adjust policies, said the Fund in the note, adding that some economies (Brazil, India, South Africa, Turkey) need to maintain the course of fiscal consolidation, given large fiscal deficits and high inflation in some cases, and high external borrowing that has increased exposure to external funding risks in others.

Earlier this week, the European Commission (EC) also revised its forecasts for the Turkish economy. The EC raised its forecast to 3.4% from a previous 3.3% for 2015 and from 3.7% to 4% for 2016.

The Turkish government expects a 4% GDP growth this year and a higher growth rate of 5% next year. While acknowledging potential risks from Europe, Deputy PM Ali Babacan said in January that the government would not revise its GDP growth forecast for 2015.

GDP Growth Projections for Turkey
(%) 2014 2015
EBRD (Sep 2014) 2.9 3.0
European Commission (Feb 2015) 2.8 3.7
Turkish Government - Medium Term Programme for 2015-2017 (Oct 2014) 3.3 4.0
IMF (Feb 2014) 3.0 3.4
Turkish Central Bank survey (Dec 2014) 3.0 3.5
World Bank (Jan 2015) 3.1 3.5
OECD (Nov 2014) 3.0 3.2
Fitch (Dec 2014) 3.0 3.3
S&P (Nov 2014) 2.9 3.0
Source: ebrd, ec, dpt, imf, tcmb, oecd, world bank, s&p
Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

Four Turkish companies reportedly consider IPOs in London or Istanbul

Turkey’s Enerjisa, Memorial Health Group, Tab Gida and Baskent Gaz are considering public offerings in London or Istanbul, unnamed sources told Bloomberg on July 19. Enerjisa, a 50:50 JV ... more

Turkey bars entry to thousands from more than 140 nations over suspected IS ties

Turkey has arrested and deported thousands of people suspected of having links to the Islamic State group according to a Turkish interior ministry report entitled “Turkey’s Fight ... more

Evolution Equity Partners closes $125mn cybersecurity-focused fund

Evolution Equity Partners announced on 17 July the final closing of a new fund with total capital commitments of $125mn to make investments in cybersecurity and next generation enterprise software ... more

Most Read

  1. Siemens considers quitting Russia
    9 days ago
  2. Wildfires hit Croatia and Montenegro’s Adriatic coast
    5 days ago
  3. Nato still has a mixed reception in Emerging Europe
    9 days ago
  4. Tajik president’s 23-year old daughter appointed deputy head of largest Tajik bank
    3 days ago
  5. COMMENT: Gazprom’s exit from Turkey is a sign of the times
    9 days ago
  1. CHINA RISING: When sleeping giants meet
    12 days ago
  2. Belarus’ retail king Euroopt goes on the road
    18 days ago
  3. STOLYPIN: Russia’s cyber-challenge cuts both ways
    20 days ago
  4. Moldova, Bulgaria, Poland, Albania and Latvia to lose more than 40% of their populations by 2100
    1 month ago
  5. Siemens considers quitting Russia
    9 days ago

Selected articles from our premium news/views wire IntelliNews Pro

Login to IntelliNews Pro
Get IntelliNews Pro

Reports

Dismiss