Turkey expected to 'grow 3.5 pct in 2013'

In its autumn forecast, the European Commission has said, "due to the expansion in the first two quarters, the annual growth rate should nevertheless reach 3.5 percent while output growth is expected to increase gradually, helped by the recent depreciation."

Turkey expected to 'grow 3.5 pct in 2013'

World Bulletin / News Desk

European Commission forecasted Turkey to grow 3.5% in 2013, 3% in 2014, and 4% in 2015 respectively.

According to the European Economic Foreceast-Autumn 2013 report written by European Commission, Turkey is expected to grow 3.5% in 2013, while the growth rate is expected to be 3% in next year, and 4.3% in 2015, following the next year.

Inflation rates are projected as 7.7% current year and to be 7.2% in next year, and 7.5% in 2015. The report says, "Annual consumer price inflation is projected to decline from 9.0% in 2012 to 7.7% in 2013. Since July, the pass-through from the lira depreciation has started to raise domestic prices. Lower international energy prices should help to keep inflation in the 7–8% range in 2014 and 2015 which is significantly above the central bank's 5% target."

Regarding the public debt ratio, little change is also forecasted regarding Turkey's large external deficits.

"Following last year's improvement, the current-account deficit started to widen again in the first half of 2013 when economic growth re-accelerated and net exports of gold turned into net imports. For the year as a whole, a deficit corresponding to 7% of GDP is projected. It is expected in the current projections that lira depreciation and lower energy prices will narrow the deficit somewhat in 2014 before stronger domestic demand will result in a renewed widening in 2015," the Commission reports.

Turkey's unemployment rate is also stated in the report. The unemployment rate is projected as 9.6% current year, 9.9% in next year, and 9.2% in 2015.

Last Mod: 05 Kasım 2013, 16:56
Add Comment