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OECD Revised Its Global Growth Forecast

The OECD revised its global growth forecast for 2022 from 3.0 percent to 3.4 percent and it lowered its growth forecast for Turkey.

OECD Revised Its Global Growth Forecast
Yazar: Eylem Özer

Yayınlanma: 31 Mayıs 2021 17:40

Güncellenme: 21 Kasım 2024 04:47

OECD Revised Its Global Growth Forecast

OECD raised its global growth forecast. OECD updated its 2021 growth forecast upwards.

While the OECD raised its 2021 global growth forecast to 5.8 percent from 5.6 percent, while it lowered its growth forecast for Turkey. The OECD revised its global growth forecast for 2022 from 3.0 percent to 3.4 percent. The report also predicted that consumer prices will average 16.0 percent this year and 12.8 percent next year. In the previous report, the expectation was 12.0 percent and 10.0 percent, respectively. The OECD revised its unemployment rate expectation from 13.7 percent to 14.0 percent this year, and revised its forecast for next year from 14.5 percent to 14.2 percent. Making an assessment regarding Turkey, the OECD made the following statements: "The macroeconomic policy mix should be significantly strengthened. The government should move more towards providing direct financial support to fragile households and companies rather than supporting the economy with concessional loans. Monetary policy should explicitly target disinfection. Policy credibility is essential for financing the external deficit and securing international funding for the safe rollover of maturing external debt. Reducing employment costs and promoting more flexible forms of employment will increase job creation. Expanding equity capital will help reduce high corporate leverage and support the growth of promising businesses."
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