IMF's nightmarish dollar forecast table for Turkey

As the International Monetary Fund (IMF) shared its growth forecasts for the Turkish economy, a grim picture emerged for the dollar/TL exchange rate. According to IMF data, the dollar/TL rate is expected to rise to 44.99 in 2025, 65.32 in 2026, 89.02 in 2027, and 119.85 in 2028.

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IMF's nightmarish dollar forecast table for Turkey

In the face of high inflation and the depreciation of the Turkish Lira, citizens' income continues to erode rapidly.

A nightmarish picture has emerged for the dollar/TL exchange rate, which has been on an upward trend following the elections.

The International Monetary Fund (IMF) has published the October edition of its World Economic Outlook report under the title "Navigating Global Divergences."

While sharing its growth forecast for the Turkish economy, the IMF's expectations for the dollar/TL rate over the next six years have also become clear.

According to the report in Sözcü, while no specific exchange rate forecast was included in the database, the average dollar exchange rate expectation was calculated based on the annual national income forecasts in TL and dollar terms.

Accordingly, the IMF expects national income, which was 15 trillion TL in 2022, to rise to 24.6 trillion TL in 2023, 40.1 trillion TL in 2024, 63.1 trillion TL in 2025, 95 trillion TL in 2026, 134.9 trillion TL in 2027, and 188.9 trillion TL in 2028.

DOLLAR EXCHANGE RATE FORECASTS FOR THE COMING YEARS

The IMF expects national income in US dollars, which was 906 billion dollars in 2022, to rise to 1 trillion 155 billion dollars in 2023, 1 trillion 341 billion dollars in 2024, 1 trillion 402 billion dollars in 2025, 1 trillion 454 billion dollars in 2026, 1 trillion 516 billion dollars in 2027, and 1 trillion 576 billion dollars in 2028.

Therefore, the IMF expects the average dollar/TL exchange rate, which was 16.57 in 2022, to rise to 21.28 in 2023, 29.92 in 2024, 44.99 in 2025, 65.32 in 2026, 89.02 in 2027, and 119.85 in 2028.

In the Medium-Term Program announced by the government, the annual average dollar exchange rate forecasts were 23.88 for 2023, 36.78 for 2024, 43.94 for 2025, and 47.80 for 2026.

GROWTH EXPECTATIONS FOR THE TURKISH ECONOMY ANNOUNCED

The IMF has revised its growth expectations for the Turkish economy upwards for this year and next year.

The Turkish economy is estimated to grow by 4 percent this year and 3.25 percent next year.

In its July forecasts, the Fund had projected that the Turkish economy would grow by 3 percent this year and 2.8 percent next year.

News Source: 12punto