Brussels’ latest set of economic forecasts project that the Turkish economy will grow 5.3% in 2017, up from the union’s previous estimate of 3% in May. The EU raised the country’s economic growth forecast for 2018 from 3.3% to 4%. The Turkish economy is also expected to grow 4.1%in 2019. The increase follows the International Monetary Fund’s raising of Turkey’s 2017 growth forecast by 2.6 percentage points on Oct. 10, the World Bank raising its forecast 0.4 percentage points on Oct. 19, and the European Bank for Reconstruction and Development’s (EBRD) lifting of it by 2.6 percentage points on Nov. 7.
“The government’s fiscal stimulus this year - supported by stronger exports, a significantly depreciated Turkish Lira in comparison with last year, and a strong boost from public finances and other policy incentives - intended to restore confidence in the Turkish economy,” the block’s economic real estate report stated. The report noted that the growth of private consumption was expected to increase towards the end of this year and continue its expansion in 2018-19. The EU sharply raised its euro-zone growth forecast for 2017 as well, confident that the economic recovery was gathering pace despite the uncertainties of Brexit. The 19-country euro-zone will grow by 2.2% in 2017, its fastest pace in a decade, the European Commission said, AFP reported.
The Commission said dark clouds that did exist included the outcome of Brexit talks between the EU and Britain, as well as geopolitical tensions between the U.S. and North Korea. Britain saw its outlook for 2017 slashed due to “uncertainty” over Brexit. “After five years of moderate recovery, European growth has now accelerated,” EU Economy Commissioner Pierre Moscovici said. “We see good news on many fronts, with more jobs being created, rising investment and strengthening public finances,” Moscovici added. In its forecasts, the European Commission said growth in 2018 would edge lower to a still strong 2.1%, followed by 1.9% in 2019. http://www.hurriyetdailynews.com/eu-raises-turkeys-growth-forecast-122190