IMF decreases growth prospects for Turkey

IMF has reduced the growth prospects for Turkey to 4,2% from 4,4% indicating that financial conditions in the Turkish economy have tightened and the external deficit is so high
Wednesday, 18 July 2018 01:00

International Monetary Fund (IMF) has decreased its growth predictions about Turkey to 4,2% from 4,4% in 2018.

Updating the reports prepared by the World Economic Outlook (WEO), IMF reminded that the central banks of the developing countries ─ including Turkey ─ hiked the interest rates against hyperinflation and exchange rate pressures.

"Most emerging market equity indices have declined modestly, reflecting, in some cases, concerns about imbalances (e.g. Argentina and Turkey), and, more generally, rising downside risks to the outlook," it is also noted in the updated IMF report.

Keeping the baseline forecast for global growth at the same level with the report in April 2018, IMF, however, stated that downside risks for the growth outlook have become more salient with increasing possibilities of "escalating and sustained trade actions," and of "tighter global financial conditions".

Stating that "The expansion is becoming less even, and risks to the outlook are mounting, while the rate of expansion appears to have peaked in some major economies and growth has become less synchronized," the IMF report shows amid rising oil prices, higher yields in the United States, escalating trade tensions, and market pressures on the currencies of some economies with weaker fundamentals as the major reasons behind the changes in its reassessment for the growth prospects.