World Bank forecast for Turkey: Will inflation peak in May?

The World Bank has published a report on the economies of Europe and Central Asia. 

The report states that a slowdown is projected this year for the emerging and developing economies of the Europe and Central Asia region, as a weakening global economy, tight monetary policy, the slowdown in China, and low commodity prices put pressure on the region's growth outlook.

The report also included significant assessments regarding the Turkish economy. 

TO GROW BY 3.6 PERCENT NEXT YEAR

Accordingly, it was noted that the Turkish economy is expected to grow by 3 percent this year and 3.6 percent next year.

In its January forecasts, the World Bank had projected that the Turkish economy would grow by 3.1 percent this year and 3.9 percent next year.

INFLATION TO GRADUALLY DECLINE

The report also stated that macroeconomic consolidation efforts are expected to constrain domestic demand.

In the bank's report, it was assessed that, "With the effect of tight monetary policy, inflation is expected to peak in May and then gradually decline, while the current account balance is projected to improve starting from 2024 with the increasing contribution of net exports."

The report, which noted that the forecasts are dependent on the continuation of the current policy stance, stated that the risks to the outlook are balanced.