OECD shares global growth forecast: Turkey's growth projection remains unchanged

The Organisation for Economic Co-operation and Development (OECD) has released its Interim Economic Outlook Report, prepared under the theme "Strengthening the Foundations for Growth." According to the report, global economic growth showed resilience in 2023, and inflation declined faster than expected.

The global economy grew by 3.1 percent last year. Growth remained strong throughout the year, particularly in the US, including the fourth quarter, while it was weaker in many other developed countries, reflecting the effects of the energy crisis.

CONTRACTION OBSERVED IN GERMAN ECONOMY

Economic growth last year was 3.3 percent in G20 countries and 2.5 percent in the US.

While growth in the Eurozone was 0.5 percent, a 0.1 percent contraction was observed in Germany, Europe's largest economy. Economic growth in 2023 was 0.3 percent in the UK, 0.9 percent in France, 5.2 percent in China, 6.7 percent in India, and 4.1 percent in Turkey.

The Brazilian economy grew by 3.1 percent, the Japanese economy by 1.9 percent, and the Russian economy by 3.1 percent, while the Saudi Arabian economy contracted by 0.9 percent last year.

Global economic growth is projected to be 2.9 percent this year and is expected to rise to 3 percent in 2025 as financial conditions improve.

The economic growth forecast for the Eurozone was revised downward by 0.3 for this year, while it remained unchanged for 2025, projected at 0.6 percent and 1.3 percent, respectively.

The Chinese economy is expected to slow to 4.7 percent this year and 4.2 percent in 2025, due to the impact of low demand, high debt, and a weak real estate market.

2025 TURKEY GROWTH REVISED

Growth in the Turkish economy is expected to be 2.9 percent this year, while it is projected to be 3.1 percent in 2025. Compared to its November forecasts, the OECD did not change its growth projection for the Turkish economy for this year, but revised it downward by 0.1 to 3.1 percent for 2025.