OECD cuts growth forecast for Turkey

The new chief economist for the Organisation for Economic Co-operation and Development (OECD), Catherine Mann, talks while presenting the advance G-20 OECD Economic Outlook on Nov. 6, at the OECD headquarters in Paris. AFP Photo

The OECD has slashed its 2015 growth forecast for Turkey from 4 to 3.2 percent in its latest Economic Outlook, released ahead of the upcoming G-20 Summit scheduled for Nov. 15.

The outlook also stated that the OECD expects some acceleration for the Turkish economy in 2016, predicting 4 percent growth.

Global GDP is projected to reach a 3.3 percent growth rate in 2014 before accelerating to 3.7 percent in 2015 and 3.9 percent in 2016, according to the outlook. This pace is modest compared with the pre-crisis period and somewhat below the long-term average. It is also slightly lower than the last OECD forecast in September.

“The global economy remains stuck in low gear, but is expected to accelerate gradually if countries implement growth-supportive policies,” the OECD said in a written statement.

The outlook draws attention to significant downside risks.

“A major concern is the weakness of demand in the euro area, which points to a rising risk of a prolonged period of stagnation and low inflation. The tightening of U.S. monetary policy could lead to financial market volatility for emerging market economies. High levels of debt in some advanced and emerging economies also raise financial stability concerns. Moreover, a key risk is that the slowdown in potential output growth since the crisis will lead to an even weaker trend growth than currently anticipated,” it said.

The full report will be announced on Nov. 25.

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