World Bulletin/News Desk
The Organization for Economic Cooperation and Development has upgraded Turkey’s consumer price inflation forecast for this year and next year, a new report released Tuesday said.
The report also predicted a gradual increase in unemployment during the next two years.
In the economic outlook report, the organization said the growth performance of Turkey recently lost momentum because of measures aimed at suppressing domestic demand and an increased volatility in capital inflows.
The pickup in exports that are expected to offset weakness in domestic demand is not that strong, the report noted.
"In the context of serious regional geopolitical tensions and the sluggish recovery in Europe, exports are projected to be subdued and the Gross Domestic Product growth will be relatively weak by Turkish standards, at 3.2 percent in 2015 and four percent in 2016,” the report said.
Despite upgrading Turkey’s growth forecast for 2014 to three percent from previous 2.8 percent, the organization warned that current account deficit would continue to pose a risk.
"The current account deficit is set to stay above five percent of Gross Domestic Product, and large short-term foreign debt refinancing needs make Turkey vulnerable to shifts in international investor sentiments.”
Moreover, Turkey’s consumer price inflation forecast, which was expected to reach eight percent in 2014, was upgraded to nine percent.
Also, 6.5 percent inflation forecast for next year was increased to 7.4 percent.
The report also forecast a gradual increase in Turkey’s unemployment rate, about 9.9 percent in 2014, 10.1 percent in 2015 and 10.2 percent in 2016.
13 terrorists killed, 2 captured, 6 surrendered on March 12-19, says Interior Ministry
Hasan Celal Guzel passes away in hospital in Ankara where he was receiving treatment
Event marked historic 1915 victory and told American public about Turkey, says head of Yunus Emre Institute in the US
Presidential spokesman Ibrahim Kalin says security and humanitarian aid operations are in progress in northwestern Syria
Erdogan says ‘terror wave against Turkey’ is nothing more than efforts of reviving Canakkale campaign century after
Red Crescent president says aid agency is building on its capacity to meet today’s needs and be fit for future trends
Binali Yildirim describes motion calling on Turkey to withdraw troops from Syria's Afrin as an 'eclipse of reason'
Prosecutors demand up to 35-year jail term for Pastor Brunson for allegedly committing crimes for terror groups
Turkey-backed forces cut off main highway between Afrin city center and western Mabatli town
Migrants were attempting to travel to Europe using illegal routes
Suspects were insulting Turkish president, spreading terror propaganada
3,569 terrorists 'neutralized' since start of Operation Olive Branch in Syria's Afrin, says Turkish president
Operation Olive Branch in Syria's Afrin is continuing successfully: Gen. Hulusi Akar
Turkey is an important NATO ally, NATO Secretary General Jens Stoltenberg tells Turkish president
Sahin Alpay is freed under judicial control with international travel ban and house arrest
Turkish president says if US wants to cooperate with Turkey against terror it must remove terrorists from east of Euphrates