IMF raises Türkiye’s economic growth forecast to 3.6% for next year

By Ovunc Kutlu

ISTANBUL (AA) - The International Monetary Fund (IMF) on Tuesday raised its economic growth forecast for Türkiye to 3.6% for next year.

That is 0.6 percentage points higher than the previous projection of 3% made in January.

The IMF, however, lowered Türkiye’s economic growth forecast for this year to 2.7% from 3%.

The financial agency also revised economic growth projections for the US. The American economy is now estimated to expand by 1.6% this year and 1.1% next year.

The figures are up from 1.4% and 1% from the previous projections made in January.

About the US banking crisis, the IMF said: "A silver lining is that the banking turmoil will help slow aggregate activity as banks curtail lending in the face of rising funding costs and of the need to act more prudently."

"Side effects from the fast rise in policy rates are becoming apparent, as banking sector vulnerabilities have come into focus and fears of contagion have risen across the broader financial sector, including nonbank financial institutions," it added.