EU slashes Turkey growth outlook slightly

BRUSSELS

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The European Union has slightly cut its growth forecast for the Turkish economy, according to a fresh report released on Feb. 13. 

In its winter economic forecast, the European Commission forecasted a 2.8 percent growth for Turkey in 2017 and 3.2 percent growth in 2018. 

In its previous report, its 2017 and 2018 forecasts were 3 percent and 3.3 percent respectively. 

The report reminded that in the third quarter of 2016, the Turkish economy shrank for the first time in seven years. 

“Under the new national accounting methodology, the change in momentum is even stronger than foreseen at the time of the autumn forecast. Leading indicators suggest the economic headwinds are likely to continue in 2017. The depreciation of the Lira may offer some relief by supporting export growth. Uncontrolled Lira volatility, however, would pose a risk to the Turkish economy,” it said.