A European bank expects the Turkish economy to grow in 2024

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The European Bank for Reconstruction and Development expected the Turkish economy to grow by 2.7 percent this year and 3 percent next year, in light of the continued tightening of monetary and financial policy in the fight against inflation.

The European Bank for Reconstruction and Development published its Regional Economic Outlook report covering the economies in which it operates.

According to the report, the European Bank revised its regional economic growth expectations in September of last year by reducing them by 0.2 percent to settle at 3 percent.

Growth in the economies of the European Bank for Reconstruction and Development last year reached 2.5 percent.

The bank revised its growth expectations for the Turkish economy to 2.7 percent, compared to 3 percent last September, as the decline in growth expectations was affected by the expectation of continued tightening of monetary and financial policy within the scope of combating inflation.

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The bank expected the Turkish economy to grow by 3 percent in 2025.

According to the report, while Turkey’s economic policy was tightened through tax increases and precautionary policy measures, economic growth last year was due to the services sector and post-earthquake reconstruction efforts.

It explained that the return to more traditional policies since last June led to enhanced confidence among local and international investors, and Turkey recently obtained its first sovereign rating upgrade from major rating agencies in more than 10 years.

On the other hand, the report stated that risks remain due to rising inflation, slowing growth in Europe, increasing geopolitical tensions in the region, and tightening global financing conditions in light of the rise in external financing needs in the short term.

Since 2009, the European Bank has provided support to 442 trade financing projects and initiatives in Turkey worth 19.8 billion euros, 93 percent of which was provided to the private sector, according to the report.