IMF Shared Its Growth Forecast for Turkey

The IMF shared its growth forecast for Turkey. The International Monetary Fund (IMF) expects the Turkish economy to grow by 5.75% in 2021.

The International Monetary Fund (IMF) Board of Directors has completed its Article 4 consultation with Turkey. In the statement made by the IMF, following statements were made: “Amid heightened uncertainty and heightened vulnerabilities, GDP growth is expected to be strong this year, but downside risks have increased. Reflecting mainly a large positive transition from the sharp activity recovery in the second half of 2020, growth is expected to return to a lower trend as of 2022. It is expected to reach approximately 5.75 percent annually.” In the continuation of the statement, the IMF said: “Inflation is expected to remain high and reserves are expected to fall further. With high external financing needs, large local FX deposits and low reserve buffers, the economy remains vulnerable to shocks and changes in sentiment at home and abroad. Domestic risks will prompt premature easing of monetary and credit policies. or other policy missteps that further erode credibility and buffers, while external risks include high global risk aversion that could expose vulnerabilities and interest rate hikes in advanced economies. Other risks include vaccine delays and adverse geopolitical developments."