The Organization for Economic Cooperation and Development raised its growth expectation for the Turkish economy to 3.7%.
Organization for Economic Cooperation and Development (OECD), “June Economic Outlook Report” has been published.
In the report titled “The Cost of War”, it was noted that the world paid a heavy price due to the Russia-Ukraine war.
Pointing out that the war slowed down the economic recovery with a humanitarian disaster and triggered a cost-of-living crisis that affected people around the world, it was stated that this, along with China’s zero Covid-19 policy, put the global economy into slower growth and increasing inflation.
Reminding that we have entered a period of high inflation, especially due to rapid increases in energy and food prices, it was stated in the report that this puts low-income people into difficulties, and poses serious food security risks in the world’s poorest countries.
Reminding that the world economy entered a strong growth process after the epidemic before the war, it was stated that the situation in Ukraine and the interruptions in the supply chain negatively affected the economic recovery.
In the report, it was pointed out that the growth will be weaker than expected in almost all economies, and it was stated that the European countries will be the most due to energy imports and the arrival of refugees.
“Countries around the world are being hit by high commodity prices, which increase inflationary pressures, constrain real incomes and spending, and further slow recovery.” In the report, which included the statement, it was stated that the slowdown in growth was the price of the war.
In the report, it was pointed out that high food and energy prices and the continuation of the problems in the supply chain may increase inflation to higher levels than previously anticipated, “New OECD forecasts show the war’s massive and global impact on inflation, which has hit 40-year highs in Germany, the UK and the US.”
Pointing out that the weakening of the supply chain, the pressures in commodity prices and the effects of increasing interest rates will be felt throughout 2023, it was noted that core inflation will be close to or above the central bank targets in many major economies at the end of the year.
The report included OECD’s economic growth projections for 2022 and 2023.
The global economic growth forecast for 2022, which was announced as 4.5% in the previous “December 2021” report, was reduced to 3% in the latest report. The growth forecast for 2023 was announced as 2.8%.
The growth forecast for the Turkish economy, which was announced as 3.3% for this year in December, was raised to 3.7% in the report published today.
The growth forecast of the Turkish economy for 2023 was 3%.
In the report, it was predicted that inflation in Turkiye will be 72.3% this year and 35.1% next year, and the unemployment rate will be 11.8% this year and next year.
Source: Trthaber / Translated by Irem Yildiz