The IMF raised its 2023 economic growth forecast for Turkey

IMF

In its World Economic Outlook report, the IMF raised Turkey’s 2023 economic growth forecast by 0.3 percentage points, reaching 3%, while it lowered the growth forecast for 2024 to 2.8%.

The IMF stated that in recent months, risks such as the resolution of the debt limit agreement in the US and the containment of crises in the banking sector between Switzerland and the US have decreased.

Therefore, it raised the global growth forecast for 2023 from 2.8% to 3% and maintained the 2024 forecast at 3%. The report emphasized that these recent developments reduced the risk of turmoil in the financial sector.

Furthermore, the IMF lowered its 2023 global inflation forecast from 7% to 6.8%.

Despite the increase in global growth forecasts compared to April, the report highlighted that they remain historically low. It also warned that risks to global growth are downward biased, inflation still remains high, and further shocks, such as escalation of the conflict in Ukraine or severe weather events, could lead to even higher inflation.

Moreover, the report mentioned concerns that the real estate sector crisis in China could potentially slow down the country’s economic recovery, which might have negative implications on a global scale.

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