OECD Corrects Expectations of Turkey’s 2020 Contraction

OECD corrects expectations of Turkey’s 2020 contraction. The organization revised its contraction expectation from 1.3 percent to 0.2. Organization for Economic Cooperation and Development (OECD), made a correction in expectations for Turkey. OECD, which revised its expectation to 0,2 percent which was previously 1,3 percent, also increased the country's 2022 growth expectation from 3.2 percent to 3.5 percent. The OECD predicts the average inflation rate in Turkey will be 12 percent in 2021 and 10 percent in 2022. Private consumption expenditures will be 3.9 percent in 2021; Estimating a 2.1 percent increase in public expenditures, OECD stated that exports will increase by 7.6 percent; Also shared the expectation that imports will grow by 9.3 percent in 2021. Estimating 13.7 percent unemployment in 2021, the organization said that the ratio of current account deficit to gross national product will be 4.6 percent. In the organization statement, which stated that it will take time for the londra to fully recover after the epidemic, also noted that the targeted incentives and structural reforms would support Turkey's recovery. Alvaro Pereira, OECD Chief Economist in a statement on the subject, said, Turkey will overcome the crisis of outbreak gradually and stated that growth is still at risk. Pereira emphasized that the focus should be on establishing macroeconomic stability, and that the post-crisis period should be seen as an opportunity to create investment opportunities for domestic and foreign investors, and stated that market and labor reforms should be made in order for companies to grow and create a quality workforce.