IMF revises Türkiye growth forecast

The International Monetary Fund (IMF) maintained its global economic growth forecast at 3.2 percent for this year, while raising its growth expectation for the Turkish economy from 3.1 percent to 3.6 percent. The IMF published the July issue of the World Economic Outlook Report under the title "The Global Economy is in a Difficult Situation." The report stated that the global economy is expected to grow by 3.2 percent in 2024, in line with the estimates made in April. The IMF report reported that the global economy is expected to grow by 3.3 percent next year. The fund's April estimates had predicted that the global economy would grow by 3.2 percent in 2025. The report noted that services inflation delays progress in disinflation, which makes it difficult to normalize monetary policy, and that upward risks to inflation and the possibility of interest rates remaining high for an extended period in the context of increasing trade tensions and policy uncertainty are increasing. The report emphasized that in order to manage these risks and protect growth, the policy mix should be carefully sequenced so as to ensure price stability and replenish diminishing buffers. Turkish economy expected to grow by 3.6 percent this year The report, which also shared countries’ economic growth forecasts, noted that the Turkish economy is expected to grow by 3.6 percent this year and 2.7 percent next year. In its April forecasts, the IMF had predicted that the Turkish economy would grow by 3.1 percent in 2024 and 3.2 percent in 2025. Growth forecast for the US economy lowered, for the Euro Zone raised The report lowered the growth expectation for the US economy for 2024 from 2.7 percent to 2.6 percent, while maintaining the growth forecast for the country’s economy for next year at 1.9 percent. The report noted that the growth forecast for the Euro Zone economy was increased from 0.8 percent to 0.9 percent for this year and remained constant at 1.5 percent for 2025. The report indicated that Germany, one of Europe's leading economies, maintained its growth forecast at 0.2 percent for this year and 1.3 percent for next year, while the growth expectation for the French economy was increased from 0.7 percent to 0.9 percent for this year and lowered from 1.4 percent to 1.3 percent for next year. The report noted that the growth forecast for the Italian economy was left unchanged at 0.7 percent for 2024 and increased from 0.7 percent to 0.9 percent for next year, and the growth forecast for the Spanish economy was increased from 1.9 percent to 2.4 percent for this year and maintained at 2.1 percent for next year. The IMF report stated that the growth expectation for the British economy was increased from 0.5 percent to 0.7 percent for this year and kept constant at 1.5 percent for next year. Chinese economy growth expectations raised The report stated that in the group of emerging market and developing country economies, the growth expectation for the Chinese economy was raised from 4.6 percent to 5 percent for this year and from 4.1 percent to 4.5 percent for next year. The report stated that the growth expectation for the Indian economy for this year was raised from 6.8 percent to 7 percent, while the growth forecast for the country’s economy for next year was kept constant at 6.5 percent. The report reported that the growth forecast for the Russian economy was maintained at 3.2 percent for this year and lowered from 1.8 percent to 1.5 percent for next year.