“The recession was lower than expected, thanks to the stronger-than-expected recovery of Turkey, the largest economies in the region, and the resilient performance of Russia,” the bank said in a statement.
The World Bank increased its 2021 growth forecast for the Turkey’s economy from 4.5% to 5%.
In the statement made by the bank, it was stated that the forecasts for the European and Central Asian economies were updated.
In the statement, which emphasized that the recovery in exports and the balancing of industrial commodity prices partially compensated the effects of the new type of coronavirus (Covid-19) epidemic that increased again at the end of 2020, it was noted that the rising and developing economies in Europe and Central Asia are expected to grow by 3.6% this year. In the statement, it was said that a moderate growth performance is expected in the region in 2021 after the 2% contraction recorded in 2020 due to the disruptions experienced due to the epidemic.
Recession in the region was less than expected thanks to Turkey and Russia
“The recession was lower than expected, thanks to the stronger-than-expected recovery of Turkey, the largest economies in the region, and the resilient performance of Russia,” the bank said in a statement.
In the statement, which emphasized that the outlook is still uncertain, it was noted that the regional growth is expected to increase to 3.8% in 2022 with the gradual mitigation of the effects of the epidemic and the acceleration of trade and investments.
In the statement, it was noted that growth may be weaker if external financing conditions tighten or geopolitical tensions increase as a result of further prolongation of the epidemic’s ending process, delay in vaccination, increase in global interest rates or worsening investor perceptions.
Turkey’s growth forecast for this year has been revised upwards
Within the scope of the update regarding the European and Central Asian economies, the growth forecast for Turkey’s economy was also revised upwards.
Turkey’s economy, which was previously predicted to grow by 0.5% in 2020, was estimated to have grown 1.8% last year.
The 2021 growth forecast for the Turkey’s economy was also increased from 4.5% to 5%.
In its Global Economic Prospects Report published in January, the bank had reduced its 2021 growth expectation for Turkey from 5% to 4.5%. Thus, the World Bank increased its 2021 expectation for Turkey’s economy to 5% again.
The 2022 forecast for the growth performance of the country’s economy was reduced from 5% to 4.5%. It was predicted that Turkey’s economy will grow by 4.5% in 2023.
Source: AA / Translated by Irem Yildiz