World Bank expects Turkish economy to recover quickly from the coronavirus crisis and grow by 5% in 2021, but it will experience a 3.8% drop this year.
The unemployment rate in Turkey fell to 13.2% during last March -0.9% less compared to the same month last year- despite quarantine measures for the coronavirus pandemic decreed that month, according to the latest data published by the Turkish Statistical Institute (TÜİK).
The latest report released on June 10 by the official statistical office indicates that the number of unemployed people over the age of 15 fell by 573,000 compared to March 2019, to stand at 3.97 million. In addition, the unemployment data for March 2020 also represent a decrease of 0.4 points compared to February of this year.
Statistics indicate that non-agricultural unemployment fell by 1.1 points in the third month of the year to 15% of the active population, while youth unemployment (between 15 and 24 years of age) fell by 0.6 % to stand at 24.6%.
The Turkish government announced on Tuesday through President Erdoğan a package of incentives to stimulate job creation and revive the economy and production in companies and industries, after the lifting of most of the restrictions imposed by the COVID-19 pandemic.
World Bank expects Turkish economy to grow at 5%
Also this week, the World Bank announced that it expects Turkish economy to recover quickly from the crisis and to experience growth of 5% in 2021 -after contracting 3.8% in 2020- once domestic demand begins to recover, which is one of the main engines of GDP in Turkey.
According to the World Bank, this year’s recession will be motivated by the fall in investments, the loss of investor and consumer confidence, the collapse of exports and the low external demand due to the setback that the coronavirus has caused in the world economy. Still, Turkey’s economy managed to grow at 4.5% in the first quarter of 2020, according to the latest data.
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When Monica finished her business degree, she had the idea to celebrate it travelling: that’s how she ended up visiting Turkey, and she liked it so much… that she decided to stay and live there! And she is still there, reporting from the city of Bursa on the latest news about the interesting Turkish economy.