Istanbul, the Bosphorus and the Çamlıca Mound

OECD estimates that Turkish economy will grow this year by 5.3%

Worldwide, the economy will grow by 3.1% this year weighed down by “the biggest energy crisis since the 1970s,” says the OECD.

The OECD (Organisation for Economic Co-operation and Development) estimates that the Turkish economy will grow this year at 5.3%, according to forecasts published in its latest Economic Outlook report in November, which indicates that Turkey’s GDP will grow at 3% in 2023 and 3.4% in 2024.

The forecast supposes a reduction of 0.1 points compared to its previous estimate made in September, which anticipated a growth of the economy of the Eurasian country of 5.4% in 2022. “The weak external demand and the persistent geopolitical uncertainties will make a dent in investment and will limit the growth of exports”, says the OECD in its report to justify the review.

The report also foresees a drop in inflation thanks to a moderation in the depreciation of the Turkish lira, although it stresses that the rise in prices in Turkey will remain above 40%. The OECD also highlights the role of State subsidies in the electricity and gas bill as well as the implementation of ambitious social housing construction projects in Turkey to offset the escalation in prices in the sector.

Globally, growth forecasts are considerably worse than those projected for the Turkish economy, with global GDP expected to grow in average no more than 3.1% this year and fall to 2.2% in 2023, due to inflation (which will reach an average of 8% this quarter among the member countries of the G-20) and what the OECD considers to be “the biggest energy crisis since the 1970s“.