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EBRD updates forecast for Türkiye's economic growth for 2023-24

Economy Materials 16 February 2023 11:32 (UTC +04:00)
EBRD updates forecast for Türkiye's economic growth for 2023-24
Maryana Ahmadova
Maryana Ahmadova
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BAKU, Azerbaijan, February 16. Türkiye's GDP growth in 2023 is expected to stand at 3 percent in 2023 and 2024, Trend reports, citing the latest regional outlook from the European Bank for Reconstruction and Development (EBRD).

The EBRD has downgraded the country's economic growth outlook by 0.5 percentage points from September 2022 estimations.

At the same time, EBRD's estimated GDP growth for Türkiye in 2022 stands at 4.5 percent.

As the bank noted, Türkiye's economic growth slowed down significantly in 2022, and is expected to fall further, as increasing demands for external financing and the political uncertainty around the 2023 elections create considerable economic vulnerability.

Meanwhile, the earthquake that occurred in the country just recently resulted in a loss of GDP of around 0.5 to 1 percent. However, an increase in output as a result of the reconstruction work could largely offset the negative impact of disruptions in economic activity.

"These forecasts do not incorporate the potential effects of the February 2023 earthquake and it is very early to be making any firm predictions about the impact on overall economic activity in 2023. A reasonable estimate would be a loss of up to 1 percent of GDP as the boost from reconstruction efforts in the later months of the year is expected to partially offset the negative impact from the damage to supply chains and infrastructure," the bank noted.

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