The Turkish economy is one of the twenty largest economies in the world in terms of GDP.

The latest news of the ...

Date:Friday, November 12, 2021

The Turkish economy is one of the twenty largest economies in the world in terms of GDP.

The latest news of the Turkish economy

The Turkish economy is one of the twenty largest economies in the world in terms of annual GDP - that is, the total goods and services produced in the country within one year - and naturally a large part of these goods are exported abroad in addition to what is being consumed in the Turkish market itself.
At the outset, it must be said that the Turkish economy has transformed during the past twenty years into a large economic tiger, possessing all the necessary capabilities to reach a seat among the ten largest economies in the world, but at the same time it still suffers from some problems that must be dealt with seriously and in an unconventional way in order to it can confront them, not only in order to achieve the desired goals, but also to ensure the continuity of the rise and competition in light of a highly sensitive global climate against the rising powers, especially the Turkish rise.

European Commission raises Turkish economic growth forecast to 9%

From 5.2 percent, in a report published on European economic growth forecasts for autumn 2021.

The European Commission raised its forecast for the growth of the Turkish economy in 2021 from 5.2 to 9 percent.
This came in a report published by the Commission, on Thursday, on the European economic growth forecast for the fall of 2021.

In its report entitled "From recovery to expansion", the Commission indicated that it raised its forecast for the growth of the European Union economy in 2021 from 4.8 in a report published last summer, to 5 percent.

It expected the inflation rate in the Union to reach 2.6 percent, and in the European region, 2.4 percent.

The commission stated in the report that it expects the Turkish economy to grow by 9 percent in 2021, and 4 percent in 2022 and 2023.

Erdogan: We expect the Turkish economy to grow by more than 10%

For his part, President Erdogan said that Ankara's economy is expected to grow at a rate of more than 10%, stressing his quest to continue to advance Turkey at all levels. For its part, the European Bank for Development and Reconstruction expected the Turkish economy to grow by 9% during 2021.

He added, "We will continue to advance Turkey on the basis of increasing production, exports, investment, and employment of labor."

He pointed out that Turkey is taking the necessary measures to reduce the cost effects of the greatly disturbed economic balances due to the Corona epidemic.

The International Monetary Fund raises its forecast for Turkey's economic growth to 9%

The International Monetary Fund raised its forecast for the growth of the Turkish economy from 5.8% to 9% this year.

And the Turkish economy grew positively by 1.8% over the past year, to record one of the few cases around the world that avoided deflation in the year of the Corona pandemic.

While it grew 21.7% year-on-year in the second quarter of 2021, recovering strongly from a sharp slowdown a year ago driven by the restrictions of the Corona pandemic.

Globally, the International Monetary Fund reduced its forecast for global economic growth to 5.9% this year, from 6% in expectations last July and April, under pressure from the outbreak of new strains of the Corona virus.

Regarding the IMF’s growth expectations in the eurozone (19 countries), the report revised its forecast for economic growth this year from 4.6% to 5%, and fixed it at 4.3% in 2022.

Turkey's economic plan in the face of global challenges

The plan is a medium-term program that includes basic economic policies, comprehensive principles and detailed economic measures, in addition to forecasts of total revenues and expenditures for the next three years, in addition to the expected budget balance, borrowing status, and the ceiling of the proposal for payments to public administrations.

The plan has set ambitious goals for itself, which are summarized in creating a stable and balanced growth structure that contributes to creating job opportunities, reducing the number of the unemployed, and reducing the current and trade balance deficit, in addition to targeting the gradual reduction of inflation rates until it reaches only one number instead of two numbers at the moment.

The plan made it necessary to consider the green transformation, observance of distributive justice, and the gradual reduction of the state’s general budget deficit, in addition to increasing disclosure, transparency and governance, as main requirements to establish confidence in the macro economy, create an atmosphere conducive to the growth and plurality of companies, preserve national capital, and attract more Foreign and local investments, achieving sustainable development, in addition to enhancing the competitive capabilities of the private sector.

The launch of this plan is accompanied by a tangible recovery of the Turkish economy, the features of which appeared in the recovery of economic growth, which is about to complete 10% by the end of the year according to many reports issued by specialized international institutions, in addition to a significant jump in exports, which increased from 168 billion dollars in 2020 to expectations With a value of $211 billion in the current year, which indicates a real recovery of the macroeconomic sectors, and the success of various government policies that were launched to avoid the negative effects of the closure resulting from the Corona pandemic.

Despite the optimistic numbers broadcast by the plan and elaborated further, detailing the means that will be used to reach it, and despite the real recovery that the Turkish economy is going through, the dualities of the lira exchange rate and the increasing inflation rates questioned these successes, especially in light of the Turkish citizen’s complaint about the rises The continuous prices, which coincided with frantic and unjustified jumps in the rental prices of residential homes, which created an atmosphere for questioning the possibility of the success of this plan in achieving its objectives.

Director at Fitch Ratings: Turkey has adapted to shocks and achieved growth

Eric Arispi Morales, director at the international credit rating agency Fitch, said on Friday that Turkey has achieved growth in the economy after adapting to different types of shocks, and Morales expected the Turkish economy to grow by 9.2 percent by the end of 2021.

He explained that expectations indicate that the depreciation of the Turkish lira and the increase in energy prices will lead to an increase in energy prices 

Influencing the increase in inflation in the coming period.

Morales stated that the increase in the number of tourists following the easing of epidemic restrictions is expected to have a positive impact on the Turkish economy.

And he added, "We expect Turkey's current account deficit to decrease to 3 percent this year, decrease to 2.3 percent in 2022 and stabilize at 2.4 percent in 2023."

Morales noted that the authorities in Turkey are determined to maintain fiscal discipline.

He added, "In addition, when we look at the past, we see that the Turkish economy has managed to grow and adapt to different types of shocks."

He continued, "This matter highlights a positive element before us, as the financial sector in Turkey has been able to resist crises and assume the role of anchor for Turkey on the financial level."


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