IMF mission raises Turkish growth higher

ISTANBUL

An IMF team that visited Turkey last month put the country’s 2012 economic growth rate at 3 percent in its preliminary findings, which is 0.7 percent above the fund’s official forecast.

“After two years of rapid growth well above trend, the economy has slowed significantly, helping to unwind imbalances. Encouragingly, Turkey’s growth is expected to remain positive and become more balanced this year, despite weak activity in major trading partners,” the report, which was revealed yesterday, said. “The economy is expected to grow at a more measured pace of 3 percent in 2012, despite weak growth in the EU.”

The Turkish government has said 2012 growth would stand at somewhere between 3 and 4 percent, revising the official target of 4 percent.

“The moderate pace of growth is helping unwind imbalances,” the IMF said. “Macroeconomic policies have started to deliver disinflation and a reduction in the current account deficit.” Inflation is decelerating but is expected to end the year above the top of the Central Bank’s inflation target band, it said. “The current account deficit is likely to decline to 7 percent of GDP in 2012.”