IMF report on Turkey: Here is the year-end inflation forecast

In a statement, the IMF announced that the Article IV consultation with Turkey was concluded on September 27.

The statement noted that the decisive shift in economic policies over the past year has tightened Turkey's overall policy stance.

It was stated that tax and spending measures have supported efforts to restore fiscal prudence, and the commitment to stronger income policies has bolstered credibility.

The statement indicated that the policy pivot has reduced economic imbalances and revitalized confidence.

Pointing out that headline inflation has fallen as tightening financial conditions exert pressure on domestic demand, the statement assessed that market sentiment has improved sharply as domestic and foreign investors turn to Turkish Lira-denominated assets, while low commodity prices, robust exports, and declining gold imports have strengthened the current account by supporting a major improvement in both gross and net reserve positions.

YEAR-END INFLATION EXPECTATION ANNOUNCED

The statement, which also included economic forecasts, noted that the Turkish economy is expected to grow by 3 percent in 2024, 2.7 percent in 2025, 3.2 percent in 2026, 3.4 percent in 2027, 3.7 percent in 2028, and 3.9 percent in 2029.

It was stated that the unemployment rate is projected to rise slightly next year before gradually declining, reaching 9.3 percent this year, 9.9 percent in 2025, and then decreasing in subsequent years to 9.2 percent in 2029.

The statement, which noted that the year-end inflation expectation is 43 percent for this year, 24 percent in 2025, 17.2 percent in 2026, 15.3 percent in 2027, and 15 percent in 2028 and 2029, also reported that the current account deficit-to-GDP ratio is estimated to be 2.2 percent this year and is expected to decline to 1.9 percent by 2029.

News Source: 12punto