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

Related Articles

Ankara bans all "protests" after dark, includes press events and group singing

Ankara has banned all "acts of protest" after dark. The wide-ranging ban, announced on May 26, even forbids press events, group singing and the shouting of slogans in public places after ... more

Richest Turkish families sell conglomerate shares for more than €500mn

Members of families that own Turkey’s two biggest groups of companies sold stakes in their respective groups for a combined sum of more than €500mn as the benchmark Turkish stock exchange index ... more

Turkey's Erdogan renews attack on high interest rates as tool of exploitation

Turkey’s President Recep Tayyip Erdogan on May 24 returned to one of his well-worn favourite themes, renewing his attack on high interest rates. “I clearly say this: I see high interest rates ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss