OECD: Turkish economy will grow 5.3 percent this year

Turkey’s economy will grow 5.3 percent in 2022, the Organization for Economic Cooperation and Development (OECD) said in its latest forecasts.

GDP growth will be 3 percent next year and 3.4 percent in 2024, said the Paris-based organization in the November edition of its Economic Outlook.

In a September report, its growth forecast for 2022 was 5.4 percent.

“Weak external demand and persistent geopolitical uncertainties will weigh on investment and limit export growth,” it said.
Inflation is projected to decline, in part due to base effects, but remain above 40 percent over the projection period, reflecting a gradual pass-through of the recent lira depreciation and wage increases to consumer prices, it said.

“Fiscal policy will remain supportive over the projection period with support measures for energy consumers and ambitious state-subsidised social housing projects.”

World growth is set to slide from 3.1 percent this year to 2.2 percent next year due to high inflation, before rebounding slightly to 2.7 percent in 2024, the OECD predicted.

OECD chief economist Alvaro Santos Pereira said the global economy was “reeling from the largest energy crisis since the 1970s”.

Inflation is set to reach eight percent in the fourth quarter of this year in the Group of 20 top economies, falling to 5.5 percent in 2023 and 2024, the OECD said.