EBRD Lowered Turkey's Growth Expectation

The European Bank for Reconstruction and Development (EBRD) lowered Turkey’s growth expectation to 2 percent. The EBRD also stated its growth forecast for 2023 is 3.5 percent.

The European Bank for Reconstruction and Development has supported thousands of businesses with private loan facilities since the beginning of 2009, and provided direct financing to both their debts and their capitals for around 80 agreements, including many businesses from commercial banks to municipalities and SMEs. Announcing its estimations on the economies of approximately 40 countries in which it operates, the EBRD stated that Turkey is one of the countries facing difficulties due to the increase in energy and grain import costs. The EBRD also stated that the pressure on the economy will increase due to the decrease in tourism revenues from Russia and Ukraine. Growth forecasts for Russia and Ukraine were also decreased. While the European Bank for Reconstruction and Development (EBRD) stated that the war between Russia and Ukraine has turned into the biggest supply crisis since the early 1970s, it reduced its growth forecast to 1.7 percent this year in the regions where it operates. In its analysis, the EBRD announced that its growth forecast for Ukraine's economy, which was 3.5 percent, was revised to a 20 percent contraction in the statement made in November last year.