EBRD forecasts gradual recovery in Turkish economy
The European Bank for Reconstruction and Development (EBRD) forecasts gradual recovery in the Turkish economy by the start of next year. The Turkish economy, which grew by 2.6 percent in 2018, is expected to shrink by one percent in 2019 and see a gradual recovery to 2.5 percent growth in 2020, the bank said in a report. “While leading indicators suggest that the slowdown may have bottomed out in the first quarter of 2019, this may in part be driven by temporary counter-cyclical measures introduced in advance of the municipal elections in March 2019,” the report, titled Regional Economic Prospects in the EBRD Regions, underlined. The report added that high-interest rates will continue to reduce consumption and investment but the weaker Turkish lira will continue to back net exports of the country. The bank expected that the inflation rate, which hit 15-year-high with 25 percent in last October, will start to come down in the second half of this year.