Turkish officials expects economy to grow 2-2.5% this year

By bne IntelliNews July 6, 2015

The Turkish economy is expected to expand between 2% and 2.5% this year, government officials told Reuters on July 6, adding that the heightened political uncertainty, including the possibility of a snap election, is suppressing investment.

The euro zone crisis, as well as violence in Syria and Iraq, are also hampering investment, according to officials.

Looking at the current situation, growth may be about 2%, growth of 2.5% would be a good rate, one senior official told Reuters, adding that even if measures to boost investor confidence are taken, growth would still only be 3%.

Another official said that depending on the result of coalition talks between political parties, GDP could still increase by 3%, while 2% is a more pessimistic expectation.

Last week, economy minister Nihat Zeybekci commented that economic growth will be higher in the second quarter than the first quarter. Domestic demand will be a key driver in 2015 growth, according to Zeybekci.

Turkey’s GDP growth slowed to 2.3% y/y in Q1, after an expansion of 2.6% y/y in the last quarter of 2014. In the whole of 2014, the Turkish economy grew by 2.9%.

The World Bank last week cut its 2016 and 2017 growth forecasts for Turkey to 3.5% (from a previous 3.9% and 3.7%, respectively), citing the uncertain political outlook while maintaining its growth forecast at 3% for 2015.

GDP Growth Projections for Turkey    
(%) 2015 2016
EBRD (May 2015) 3.0 3.0
European Commission (May 2015) 3.2 3.7
Turkish Government - Medium Term Programme for 2015-2017 (Oct 2014) 4.0 5.0
IMF (April 2015) 3.1 3.6
Turkish Central Bank survey (April 2015) 3.1 3.6
World Bank (Apr 2015) 3.0 3.5
OECD (June 2015) 3.1 3.9
S&P (May 2015) 3.0 3.2
Source: ebrd, ec, dpt, imf, tcmb, oecd, world bank, s&p, kap    
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
    10 days ago
  2. Wildfires hit Croatia and Montenegro’s Adriatic coast
    6 days ago
  3. Tajik president’s 23-year old daughter appointed deputy head of largest Tajik bank
    4 days ago
  4. Nato still has a mixed reception in Emerging Europe
    9 days ago
  5. MACRO ADVISER: It's the oil price, stupid
    7 days ago
  1. CHINA RISING: When sleeping giants meet
    13 days ago
  2. Belarus’ retail king Euroopt goes on the road
    18 days ago
  3. STOLYPIN: Russia’s cyber-challenge cuts both ways
    21 days ago
  4. Siemens considers quitting Russia
    10 days ago
  5. COMMENT: Gazprom’s exit from Turkey is a sign of the times
    10 days ago

Selected articles from our premium news/views wire IntelliNews Pro

Login to IntelliNews Pro
Get IntelliNews Pro

Reports

Dismiss