OECD cuts 2014 growth forecast for Turkey to 2.8%.

By bne IntelliNews May 6, 2014

OECD has cuts its GDP growth forecast for Turkey for 2014 to 2.8% from a previous 3.8% while it has also slashed the 2015 forecast to 4% from a previous 4.1%.

Growth is projected to remain subdued through mid-2015, while current account deficit will remain very high, the OECD said in the latest issue of its regular Economic Outlook report, published on Tuesday. On the assumption that domestic confidence is restored and international confidence upheld, GDP growth may approach 3% this year and 4% in 2015, the OECD stressed. The OECD expects Turkey’s current account deficit, which stood at 7.9% of its GDP, to narrow to 6.6% this year but to widen to 6.9% of GDP in 2015. The OECD forecasts an inflation rate of 8% this year but says inflation will fall to 6.5% in 2015. High inflation will persist in 2014 as a result of additional pass-through from exchange rate depreciation and indirect tax increases, according to the OECD.

Political tensions have dented confidence, and sustaining domestic and international confidence is crucial, the OECD said. The Organisation also recommends improvement in fiscal transparency with timely general government accounts and comprehensive reporting. Disinflation is crucial to preserve the bulk of recent competitiveness gains and to allow Turkey to benefit more from the projected recovery in global trade, the Outlook report underlined.

The OECD sees further financial market turmoil during the prospective normalisation of US monetary policy and intensifying internal political tensions as two major risks to the Turkish economy. If either of them were to materialise, confidence could falter and tensions arise in foreign funding, the OECD concluded.

OECD Economic Outlook Report Turkey Projections- May 2014
  2012 2013 2014 2015
Gross domestic product  growth 2,1 4 2,8 4
 Private final consumption expenditure  -0,5 4,6 1,9 4,7
 Government final consumption expenditure  6,1 5,9 5,6 4,3
 Unemployment rate - as a percentage of labour force 9 9,5 9,8 9,6
 Consumer price -  headline inflation 8,9 7,5 8 6,5
 Current account balance -  as a percentage of GDP -6,1 -7,9 -6,6 -6,9
Source: OECD        

Related Articles

Turkey postpones plan to sell firms seized after coup attempt

Turkey has put on hold its plan to sell almost 600 companies worth about $10bn seized in the aftermath of the failed military coup, people familiar with the matter told Bloomberg on March 23. The ... more

Turkey to maintain EU economic relations but review political ties, says Erdogan

Turkey will maintain its commercial ties with the European Union but will review its political and administrative ties with the bloc after the April 16 referendum, Turkish President Recep Tayyip ... more

Turkey easily tops table for Twitter content removal requests

Turkey accounted for more than half of all content removal requests received worldwide by Twitter during the second half of 2016, according to the social media company’s ... 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