The Organization for Economic Cooperation and Development (OECD) published the “Interim Economic Outlook” report, in which it updated its global economic forecasts for 2024 and 2025. In the report, growth expectations for the Turkish economy were revised downwards, while inflation forecasts were projected to increase.
The Organization for Economic Cooperation and Development (OECD) published the “Economic Outlook” report, in which it updated its global economic forecasts for 2024 and 2025. In the report, growth expectations for the Turkish economy were revised downwards, while inflation forecasts were projected to increase.
OECD revised Turkey’s growth forecast for 2024 from 3.4 percent to 3.2 percent and its growth forecast for 2025 from 3.2 percent to 3.1 percent. The institution assessed that the Turkish economy is affected by the current global conditions and the effects of the tight monetary policy stance on growth.
On the inflation side, the OECD updated its inflation forecast for 2024 to 56.0 percent, which is 0.5 percent above the previous forecast. The inflation expectation for 2025 was also revised up by 0.2 percent to 29.1 percent.
An increase is also observed in core inflation expectations. For 2024, core inflation was raised from 57.5 percent to 58.1 percent, and for 2025 from 28.7 percent to 28.9 percent. While the OECD predicted that the world economy will grow by 3.2 percent this year, it warned that geopolitical risks and trade tensions could suppress the global economic recovery. High inflation in many emerging economies, including Turkey, is expected to be more persistent than in advanced economies.
The report emphasized that Turkey should continue to keep monetary policy tight to combat inflation. According to the OECD, it is important to maintain this tight stance until a certain period in 2025 to bring inflation under control.