Istanbul, skyscraper in Maslak

Erdoğan announces that Turkish economy will grow this year over 10%

The European Bank for Reconstruction and Development has raised the growth forecast for the Turkish economy from 5.5% to 9%.

The President of Turkey, Tayyip Erdoğan, announced that the Turkish economy will grow this year over 10%, above the forecasts of the government itself as well as those of market analysts, despite the fact that inflation continues to be one of the main burdens in the economy of the Eurasian country.

“Although international institutions estimate a growth of 9%, we believe that we will reach double-digit growth figures by the end of the year,” Erdoğan explained in a video message issued during a conference organised by a communication group. In this regard, the Turkish president recalled that Turkey’s GDP grew by 7.2% and 21.7% in the first and second quarters of 2021, respectively.

Erdoğan also referred to the fight against the coronavirus, at a time when Turkey has begun to apply a third booster dose of the Pfizer vaccine while the country continues to register about 30,000 daily infections; the Turkish president was optimistic about the possibility of defeating the virus and returning to normal, highlighting the strong recovery in tourism. Turkey – he added – was the only country along with China of the G-20 that achieved positive growth in 2020, thanks to the fact that it maintained its production during the pandemic.

Shortly before the Turkish president made this speech, the European Bank for Reconstruction and Development (EBRD) updated its 2021 growth forecast for Turkish GDP, now placing it at 9% compared to its previous estimate – made in June – of 5.5%.

Previously, the Turkish government itself had also estimated that the Turkish economy would grow by 9% this year. The EBRD believes that the strong recovery in exports and tourism, as well as strong domestic demand in Turkey, will contribute to the economic growth of the Eurasian country, although it underlines that inflation continues to be one of the main obstacles to the post-pandemic recovery.