Turkish economy to grow 3.5% this year, Turkish Industry and Business Association projects
Turkish economy is projected to post higher growth this year, said the head of the Turkish Industry and Business Association (TUSIAD) on Thursday.
“The components of this growth forecast are comprised of the rise in public expenditures and especially the expansion in the balance sheets of public banks,” Simone Kaslowski told a regular meeting of general assembly held in Istanbul.
However, Kaslowski warned the growth rate would be insufficient to solve unemployment.
According to latest data, the unemployment rate in Turkey was 13.4% in October 2019.
Turkey re-entered the path to growth in the third quarter of 2019 thanks to steps towards balancing as well as interventions against financial attacks.The economy expanded 0.9% year-on-year in the third quarter of last year after contracting 2.3% in the first quarter and 1.6% in the second quarter, on an annual basis.
Kaslowski pointed out that the contraction in domestic demand last year was replaced by a slight recovery in 2020.
“The recovery in sectors that are deeply affected last year, especially construction, may take longer,” he stressed.
Separately, the top business group announced 3.5% growth rate projection for Turkey in 2020 in a report.
The report also forecast that monetary policy would have partial support on economic growth and inflation would remain at double digits.