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

Erdogan says he plans talks with lenders on cutting Turkish interest rates

Turkey's President Recep Tayyip Erdogan said on October 13 that he plans to hold talks with both public and private lenders on how to lower interest rates. He did not say, however, when those ... more

Turkey's Erdogan turns fire on US ambassador in diplomatic spat over arrest

Turkish President Recep Tayyip Erdogan has turned his fire on the US ambassador to Turkey for the ... more

Turkey-based Eurasian development bank ETDB signs memo to boost return to Iran

The Central Bank of Iran (CBI) and the Turkey-based ECO Trade and Development Bank (ETDB) have signed a memorandum on strengthening bilateral ties, the CBI said on October 10. ETDB is a Eurasian ... more

Most Read

  1. Moldova's Ascom moves ahead with recovering $500mn from Kazakh state
    7 days ago
  2. INTERVIEW: The quiet thunder of Ruben Vardanian
    9 days ago
  3. INTERVIEW: de Villepin says Ukraine should declare itself neutral
    9 days ago
  4. KRUK REPORT: Is Ukraine changing its Donbas policies?
    4 days ago
  5. MOSCOW BLOG: Russia’s import substitution has not been a great success
    7 days ago
  1. STOLYPIN: Russia balances wargames with mindgames in Zapad exercises
    27 days ago
  2. Russia to bring in record breaking harvest of 127mn tonnes
    18 days ago
  3. Investors ask which Russian bank domino will be the next to topple
    24 days ago
  4. Eastern Europe’s blockchain revolution
    12 days ago
  5. INTERVIEW: de Villepin says Ukraine should declare itself neutral
    9 days ago

Selected articles from our premium news/views wire IntelliNews Pro

Login to IntelliNews Pro
Get IntelliNews Pro

Reports

Dismiss