World Bank forecast: stabilization and growth of the Turkish economy
18 January 2021
The World Bank has published a new forecast for Turkey's economic prospects for 2021According to the World Bank's recently published forecasts, Turkey's economy is expected to grow by 4.5% in 2021, which is 0.5 percentage points higher than the October forecast.
Throughout 2020, Turkey's economy struggled to recover from the pandemic and successfully avoided cuts. At the same time, according to the World Bank's global economic Outlook report for January 2021, published on Tuesday, activity increased by about 0.5% on the background of a significant expansion of lending.
In its previous forecast, the World Bank predicted a 3.8% drop in Turkey's gross domestic product in 2020.
A sharp acceleration in the number of new cases of COVID-19, as well as the introduction of quarantine measures, including border closures, led to a decrease in the flow of tourists and a reduction in profits from this sector. Meanwhile, tighter-than-expected monetary policy combined with the effects of the coronavirus have put pressure on the country's economic recovery, forcing emergency measures.
Regarding 2020, it was stated that the country's economic growth will accelerate to 5.0%, bringing it to the first place among developing countries.
In addition, according to the report, economic activity in Europe and Central Asia decreased by 2.9% in 2020. The pace of recovery is expected to be extremely slow due to the effects of the second full pandemic.