Türkiye will grow 2.4 percent this year: World Bank

WASHINGTON

The World Bank has forecast that the Turkish economy will grow 2.4 percent this year and that the GDP growth will accelerate to 4 percent in 2024.

According to the Washington-based development lender the Turkish economy grew 4.7 percent last year.

Türkiye will release the data for the 2022 growth on Feb. 28. The Turkish economy expanded 3.9 percent in the third quarter of last year, easing from 7.7 percent in the April-June period. In 2022, the economy grew 11.4 percent.

“Growth in Türkiye continues to face considerable headwinds and risks, with high inflation and growing external vulnerabilities amid a sharp widening of the current account deficit,” said the bank’s latest Global Economic Prospects report.

Growth is projected to moderate somewhat in 2023, to 2.7 percent, as increased government spending ahead of the June 2023 elections counteracts slowing exports and domestic demand amid persistent inflation and heightened policy uncertainty, it added.

The global economy will come “perilously close” to a recession this year, led by weaker growth in all the world’s top economies — the United States, Europe and China — the World Bank warned in the report.

It slashed its forecast for global growth this year by nearly half, to just 1.7 percent, from its previous projection of 3 percent.

In the U.S., growth will likely slow to 0.5 percent in 2023, much lower than earlier forecast, while the euro area is to flatline as it battles energy supply disruptions and price hikes related to Russia’s invasion. China is predicted to expand 4.3 percent this year, 0.9 points below previous expectations, partly due to lingering pandemic disruptions and property sector weakness.

“I’m concerned, deeply concerned that the slowdown may persist,” said World Bank President David Malpass.

“The outlook is particularly devastating for many of the poorest economies, where poverty reduction has already ground to a halt,” he added.

“Emerging and developing countries are facing a multi-year period of slow growth driven by heavy debt burdens and weak investment.”