IMF Warns Turkey: Growth to Decelerate

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The International Monetary Fund (IMF) has released its “Regional Economic Outlook Report” for Europe. The report included IMF economy experts’ opinions and forecasts for European countries including Turkey.

Expectation for the economic growth is 3.5%

The report including the forecast that the growth will slow down due to decreasing financial aid and tight-money policy, declared its prediction of Turkey’s economic growth in 2018 as 3.5%

“Core inflation tops”

Stressing that annual inflation increased to 10.7% in August 2017 in Turkey, the report highlighted that “Inflation is more than double of Central Bank’s goal of 5%. Core inflation has climbed to the highest rate of the last three years due to partially extreme expansionary macro economic policies”.

The report also stated that the high inflation negatively affects

“Unemployment is on decline in Europe”

Stressing that European economies have become stronger, the report foresaw that overall real GDP growth is projected at 2.4 percent in 2017, faster than was expected in April 2017, and up from 1.7 percent in 2016”.