IMF assessment of Turkey

International Monetary Fund (IMF) European Department Director Alfred Kammer made significant assessments regarding the Turkish economy. Speaking at a press conference held within the framework of the IMF and World Bank Spring Meetings, Kammer said that the effects of the strong momentum observed in Turkey's growth performance in the second half of 2023 continue.

"GROWTH FORECAST REVISED UPWARD"

Responding to Anadolu Agency's question regarding growth expectations for the Turkish economy, Kammer said, "We see that the strong momentum from the second half of 2023 is continuing in growth performance. This has led to an upward revision of the 2024 growth forecast. Although the increase is small, it is important in terms of offsetting the negative impact of tariffs and uncertainties on growth."

"DISINFLATION PROCESS IS PROGRESSING BUT NEEDS TO ACCELERATE"

Kammer stated that the Turkish government's anti-inflation program is being implemented and that the economy is making progress in the disinflation process. However, emphasizing that this process needs to move faster, Kammer said that a tighter macroeconomic policy mix is needed for this.

"Accelerating disinflation is a fundamental requirement. Because the longer the effort to reduce inflation is prolonged, the more the economy remains fragile and open to unforeseen shocks. Therefore, the cornerstone of disinflation must be a tighter fiscal policy," he said.

IMF HAD UPDATED GROWTH FORECASTS 

In its World Economic Outlook Report published on April 22, the IMF had slightly revised its 2024 growth forecast for the Turkish economy upward. Accordingly, while Turkey's growth rate for this year exceeded expectations, the 2025 growth forecast was kept constant at 2.7 percent. The report also stated that growth is expected to accelerate to 3.2 percent in 2026 due to the effects of changes in the direction of monetary policy.

News Source: 12punto