OECD cuts Turkey's 2015 growth forecast to 3.2 percent

Global growth is also lower than predicted in previous forecasts, although there is an improved outlook for Turkey.

OECD cuts Turkey's 2015 growth forecast to 3.2 percent

World Bulletin/News Desk

The Organization for Economic Co-operation and Development cut Turkey’s growth forecast for 2015 to 3.2 percent, down from 4 percent on Thursday.

Turkey is expected grow by 3.2 percent in 2015 and 4 percent in 2016, according to a press release preview of the organization's Economic Outlook report due on November 25.

The prediction is lower than the forecast of the Turkish government's Medium-Term Economic Program, in which the most recent forecast is 4 percent growth in 2015 -- cut from 5 percent in a previous forecast. The most recent government forecast, made on Oct. 8, maintained its target of 5 percent growth for 2016.

The organization estimated moderate global growth for the near future, with a substantially increased growth outlook for emerging economies such as Turkey.

“Global GDP growth is projected to reach a 3.3 percent rate in 2014 before accelerating to 3.7 percent in 2015 and 3.9 percent in 2016” the report said.

”The pace is modest compared with the pre-crisis period and somewhat below the long-term average. It is also slightly lower than the last OECD forecast in September.”

The organization's Secretary-General Angel Gurria said that efforts needed for broad-based, sustained global expansion are far from over since  “investment, credit and international trade remain hesitant.”

“Countries must employ all monetary, fiscal and structural reform policies at their disposal to address these risks and support growth,” Gurria said.

The fragile recovery in Eurozone is acknowledged as most important risk factor for the global economy in the report.

The United States is estimated to grow by 2.2 percent in 2014, and about 3 percent in 2015 and 2016.

However the organization forecasts much slower growth for the Eurozone economy in near future. The Eurozone is expected to grow by  0.8 percent in 2014 and then to quicken to 1.1 percent in 2015 and 1.7 percent in 2016.

Last Mod: 06 Kasım 2014, 16:30
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