The European Bank for Reconstruction and Development (EBRD) growth forecast for the Turkish economy for this year, which was announced in May as 2.5 percent, was raised to 3.5 percent.
The upward revision reflected the strong growth in the first half of the year due to the pre-election fiscal revival, the report said, projecting that the Turkish economy will grow by 3 percent in 2024.
It noted that despite the expected growth performance, external financing imbalances persisted as short-term external debt exceeded 200 billion dollars and the current account deficit hovered around 60 billion dollars, while foreign exchange reserves increased but remained modest.
The report, which sees the return to orthodox economic policies as a positive signal, stated that the local elections in March 2024 will be an important factor.
EBRD economists stated that Türkiye has shown a relatively strong growth performance in recent years, but there has been a slowdown, while the report noted that the growth of the Turkish economy declined to 3.9 percent in the first half of 2023 from 5.6 percent in the same period last year.
EBRD's investments in Türkiye, mostly in the private sector, amount to 18 billion euros.
Moody's had raised its growth forecast for the Turkish economy to 4.2 percent and the International Monetary Fund (IMF) to 3 percent.