Gezi impact on economic growth forecast limited: World Bank

ANKARA - Anadolu Agency

The World Bank’s country director for Turkey, Martin Raiser, held a press meeting yesterday to present the Regular Economic Brief for Turkey. AA photo

Economic growth in 2013 is forecast to remain below previous expectations at an estimated 3.6 percent, according to the World Bank’s latest Regular Economic Brief for Turkey, which was launched July 3 at a press meeting in Ankara. This is, however, not about the Gezi Protests, the World Bank officials said.

“Turkey’s first quarter growth was fairly positive, but we have not increased our growth expectations as we believe the latest decision of the U.S. Federal Reserve (FED) to end the high liquidity party in the global economy could specifically cause huge hot money outflows from some emerging countries that have high current account deficits, such as Turkey,” said Çağdaş Ünal, an economist at the World Bank’s Ankara office.

“Moderate growth indicates persistent global uncertainty and the recent tightening of international liquidity, while also pointing to signs of a revival in domestic demand,” said Martin Raiser, country director for Turkey at the World Bank.

He added specifically that Turkey had been negatively affected by the economic crisis in the European Union, which still has a lion’s share in Turkey’s overall trade at more than 40 percent. The Gezi Protests’ effect on the Turkish economy was limited, according to Raiser. “The existing data show no negative signals on the confidence in Turkey and in tourism revenues,” he said.