UN: Turkey to grow by 3.2 percent in 2024

The United Nations (UN) has stated that the short-term global economic outlook is cautiously optimistic, raising its global economic growth forecast for this year to 2.7 percent. The report notes that economic growth in Turkey is expected to be 3.2 percent this year.

The UN shared the mid-year update of its World Economic Situation and Prospects 2024 report, which was published in January.

The report points out that global economic expectations have improved since January, stating that major economies have avoided a serious downturn and have lowered inflation without increasing unemployment.

However, the statement notes that the outlook is only cautiously optimistic, adding: "Prolonged high interest rates, debt sustainability challenges, ongoing geopolitical tensions, and worsening climate risks continue to create headwinds for growth, threatening decades of development gains, especially for the least developed countries and small island developing states."

GLOBAL GROWTH FORECAST RAISED

The report states that the global economy is expected to grow by 2.7 percent this year, which is 0.3 percentage points higher than what was projected in January.

The report, which notes that the projected growth in the world economy for next year has been increased by 0.1 percentage points to 2.8 percent, states that the upward revisions reflect a better outlook primarily in the US, as well as in Brazil, India, and Russia.

In the report, the growth expectation for the US in 2024 was raised by 0.9 percentage points to 2.3 percent, while a small increase was recorded in the outlook for China, with growth in the country expected to be 4.8 percent this year.

The report also points out that Africa's economic outlook has worsened since the last publication, with the expected growth for 2024 falling by 0.2 percentage points to 3.3 percent.

The report notes that economic growth in Turkey is expected to be 3.2 percent this year. It was stated that Turkey's current account deficit narrowed at the beginning of this year due to the softening of domestic demand and a decrease in imports.

The UN report mentions that global growth in the coming years is expected to remain below the 3.2 percent average of the 2010-2019 period.

PERSISTENT CHALLENGES IN DEVELOPING ECONOMIES HIGHLIGHTED

The report notes that the softening of international commodity prices and the tight monetary stance adopted by most central banks have put the global economy on a path to combat inflation, yet some developing economies continue to struggle with persistently high inflation.

The report points out that most developing economies are also facing challenges such as high borrowing costs, persistent exchange rate pressures, and ongoing political instability.

The report emphasizes that the stagnant employment situation in developing economies contrasts with the situation in developed economies, particularly in North America, Europe, and Japan, where unemployment rates are near record lows. It also states that the short-term outlook for some economies is overshadowed by the potential intensification of geopolitical tensions and multiple conflicts around the world.

News Source: 12punto