OECD revises Turkey's growth forecasts upward
In its latest Interim Economic Outlook report released yesterday, the Organization for Economic Cooperation and Development (OECD) has revised up its growth forecasts for the Turkish economy.
In its press release, the OECD said Turkey's growth rate is estimated to have risen by 6.9 percent in 2017 instead of 6.1 percent as previously expected. It also said it expects the Turkish economy to grow by 5.3 percent in 2018 and 5.1 in 2019, from 4.9 percent and 4.7 percent, respectively.Global economic expansion is strengthening, as robust investment growth, an associated rebound in trade and higher employment drive an increasingly broad-based recovery, the OECD said.
The organization said the global growth rate is estimated to have risen by 3.7 percent in 2017.
"Global GDP growth is estimated to have been 3.7 percent in 2017, the strongest outcome since 2011, with positive growth surprises in the euro area, China, Turkey and Brazil," the OECD said in a press release.
The OECD also said it projects global GDP growth to rise by 3.9 percent in 2018 and 2019.
In November 2017, the OECD predicted an increase of 3.6 percent for 2017 and 2019, and a rise of 3.7 percent for 2018.
"Industrial production, investment and trade growth have rebounded, with global trade growth reaching an estimated over 5 percent in 2017, and business and consumer confidence remain elevated," the OECD stated.
The OECD stressed that the world economy would continue to strengthen in 2018 and 2019.
"Growth in the U.S., Germany, France, Mexico, Turkey and South Africa is projected to be significantly more robust than previously anticipated, with smaller upward revisions in most other G20 economies," it added.
The OECD added that the tax and public spending reductions in the U.S. during the last three months and Germany's fiscal stimulus were key factors for upgrading global growth predictions in 2018 and 2019.
"Stronger GDP growth is being accompanied by solid job creation, with the OECD-wide unemployment rate having finally fallen below the pre-crisis level," the OECD said.
It highlighted that many countries' rising risk-taking and high debt levels raised financial vulnerabilities.
Among G20 countries, only Russia's growth rate is estimated to have decreased 1.5 percent in 2017. It is also expected to fall 1.8 percent in 2018.