OECD re­vises growth es­ti­mates for Turk­ish econ­omy up­wards

Daily Sabah (Turkey) - - Front Page -

THE TURK­ISH econ­omy will grow by 5.3 per­cent in 2018 and 5.1 in 2019, the Or­ga­ni­za­tion for Eco­nomic Co-op­er­a­tion and De­vel­op­ment (OECD) said in its re­cent re­port yes­ter­day, re­vis­ing up its pre­vi­ous es­ti­mates from 4.9 per­cent for 2018 and 4.7 per­cent for the year af­ter.

IN ITS lat­est In­terim Eco­nomic Out­look re­port re­leased yes­ter­day, the Or­ga­ni­za­tion for Eco­nomic Co­op­er­a­tion and De­vel­op­ment (OECD) has re­vised up its growth fore­casts for the Turk­ish econ­omy.

In its press re­lease, the OECD said Turkey’s growth rate is es­ti­mated to have risen by 6.9 per­cent in 2017 in­stead of 6.1 per­cent as pre­vi­ously ex­pected. It also said it ex­pects the Turk­ish econ­omy to grow by 5.3 per­cent in 2018 and 5.1 in 2019, from 4.9 per­cent and 4.7 per­cent, re­spec­tively.

Global eco­nomic ex­pan­sion is strength­en­ing, as ro­bust in­vest­ment growth, an as­so­ci­ated re­bound in trade and higher em­ploy­ment drive an in­creas- in­gly broad-based re­cov­ery, the OECD said.

The or­ga­ni­za­tion said the global growth rate is es­ti­mated to have risen by 3.7 per­cent in 2017.

“Global GDP growth is es­ti­mated to have been 3.7 per­cent in 2017, the strong­est out­come since 2011, with pos­i­tive growth sur­prises in the euro area, China, Turkey and Brazil,” the OECD said in a press re­lease.

The OECD also said it projects global GDP growth to rise by 3.9 per­cent in 2018 and 2019.

In Novem­ber 2017, the OECD pre­dicted an in­crease of 3.6 per­cent for 2017 and 2019, and a rise of 3.7 per­cent for 2018.

“In­dus­trial pro­duc­tion, in­vest­ment and trade growth have re­bounded, with global trade growth reach­ing an es­ti­mated over 5 per­cent in 2017, and busi­ness and con­sumer con­fi­dence re­main el­e­vated,” the OECD stated.

The OECD stressed that the world econ­omy would con­tinue to strengthen in 2018 and 2019.

“Growth in the U.S., Ger­many, France, Mex­ico, Turkey and South Africa is pro­jected to be sig­nif­i­cantly more ro­bust than pre­vi­ously an­tic­i­pated, with smaller up­ward re­vi­sions in most other G20 economies,” it added.

The OECD added that the tax and pub­lic spend­ing re­duc­tions in the U.S. dur­ing the last three months and Ger­many’s fis­cal stim­u­lus were key fac­tors for up­grad­ing global growth pre­dic­tions in 2018 and 2019.

“Stronger GDP growth is be­ing ac­com­pa­nied by solid job cre­ation, with the OECD-wide un­em­ploy­ment rate hav­ing fi­nally fallen be­low the pre-cri­sis level,” the OECD said.

It high­lighted that many coun­tries’ ris­ing risk-tak­ing and high debt lev­els raised fi­nan­cial vul­ner­a­bil­i­ties.

Among G20 coun­tries, only Rus­sia’s growth rate is es­ti­mated to have de­creased 1.5 per­cent in 2017. It is also ex­pected to fall 1.8 per­cent in 2018.

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