EU raises Turkey's 2017 growth forecast
The EU has increased its 2017 growth prediction for Turkey by two percentage points, says a new report published this week.
The European Economic Forecast Autumn report predicts that Turkey’s economy will grow by 5.3 percent this year - more than two percent higher than its previous forecast in May, which was three percent.
The increase comes after other global institutions, namely the International Monetary Fund, the World Bank and the European Bank for Reconstruction raised their growth forecast for 2017.
Boosted by economic reforms, the Turkish economy grew 5.2 percent in the first quarter of 2017, and 5.1 percent in the second quarter. A raft of measures designed to improve economic indicators worked despite the added complication of a low Turkish Lira.
“The government’s fiscal stimulus this year - supported by stronger exports, a significantly depreciated Turkish Lira in comparison with last year, and a strong boost from public finances and other policy incentives - intended to restore confidence in the Turkish economy,” said the economic report.
The report also mentioned that growth of private consumption was expected to rise towards the end of this year, and continue expanding over the next two years.
Overall, the Eurozone is expected to experience greater economic growth this year too, despite political uncertainty brought on by the UK’s Brexit. Growth for the Eurozone should reach 2.2 percent this year. Although the figure seems low, it’s the fastest pace in a decade.
“After five years of moderate recovery, European growth has now accelerated,” EU Economy Commissioner Pierre Moscovici said. “We see good news on many fronts, with more jobs being created, rising investment and strengthening public finances,” he added.
The European Commission has stated that 2018 Eurozone growth would drop to 2.1 percent, while Turkey’s would be closer to five percent.