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Forecasts of Increase in Turkish Economic Growth

Forecasts of Increase in Turkish Economic Growth

Thursday, 11 January, 2018 - 12:45
A street vendor sells roasted chestnuts in front of a branch of Halkbank in central Istanbul, Turkey, January 10, 2018. REUTERS/Murad Sezer

The World Bank has revised Turkey’s economic growth projection for 2017 up to 6.7 percent, while keeping that of 2018 at 3.5 percent.

According to the bank’s Global Economic Prospects report for 2018, financial support would have a huge impact on the Turkish economic recovery.

Forecasts of the World Bank go in tandem with the Turkish government’s expectations regarding the growth rate of 2017, in which Turkish Economy Minister Nihat Zeybekci stated a few days ago that the growth rate of 2017 is most likely to stand at 7 percent.

So far, no official declaration has been made about the economic growth rate of 2017. Yet the 11.1 percent growth rate reached in the third quarter of 2017 led to high expectations for the year as a whole. The Turkish highest growth rate was 11.1 percent in 2011 and the lowest was in 2016 that witnessed the failed coup attempt in July of that year (2.3 percent growth and 1.8 percent shrinkage).

In the same context, Fitch Ratings expected Turkey's economy to grow by 4.8 percent annually on average in the next five years. The country’s strong growth rate “hinges crucially on continued high investment rates, which could be vulnerable to a sustained slowdown in capital inflows,” the report said.

India came on top among the 10 emerging markets in the report with a potential growth rate of 6.7 percent in the next five years. China and Indonesia jointly ranked second, both with a projected potential growth rate of 5.5 percent.

In another matter, the Ministry of Transport, Maritime Affairs and Communications announced Wednesday that a total of 87,593 ships passed through Turkish straits in 2017.

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