OECD Raises 2023 Growth Forecast for Turkey

The OECD has raised its 2023 growth expectation for Turkey from 4.3% to 4.5%. The inflation expectation for 2023 has also been increased from 52.1% to 52.8%.

In the ‘Economic Outlook’ report published by the Paris-based OECD, the growth expectation for Turkey was raised.

Accordingly, the 2023 growth expectation for Turkey has been increased from 4.3% to 4.5%. The expectation for 2024 is 2.9%, and for 2025 it is 3.2%.

Inflation forecasts were also revised upwards. The inflation expectation for 2023 was raised from 52.1% to 52.8%, and the estimate for 2024 was increased from 39.2% to 47.4%.

In the assessment made regarding Turkey, it was stated that tight financial conditions and stubbornly high inflation would moderate household consumption, while exports are expected to gain momentum in 2025 with the strengthening of global growth. It was noted that interest rate hikes by the Central Bank of the Republic of Turkey (CBRT) are expected to continue until there is a significant improvement in the inflation outlook.

The report mentioned that the global economy is heading towards a ‘soft landing’ next year, while the global growth forecast for this year was reduced from the 3% level estimated in September to 2.9%.

It was stated that global growth in 2023 has been stronger than expected so far, but it is moderating due to tightening financial conditions, weak trade growth, and a decline in Consumer Confidence.

Attention was drawn to the Israel-Hamas conflict, stating, “If the conflict deepens and spreads to the region, risks to growth and inflation will also increase.”

In the absence of major shocks to food and energy prices, headline inflation in OECD countries is expected to decline from this year’s level of 7% to 5.2% in 2024 and 3.8% in 2025.

According to the OECD, the current public debt-to-GDP ratio is at all-time high levels, and governments are facing increased fiscal pressures for various reasons, including the need to combat climate change.

The US economy is expected to grow by 2.4% in 2023, with growth slowing to 1.5% in 2024. The Eurozone is projected to grow by 0.3% this year, 0.9% in 2024, and 1.5% in 2025.

“As Yusuf Boz, at the helm of NotteGlobal.com, I am heartened by the recent OECD report elevating Turkey’s 2023 growth projections. This news is a beacon of optimism for real estate investors and underscores why Turkey remains a golden opportunity for investment.

The OECD’s upward revision of Turkey’s growth forecast from 4.3% to 4.5% for 2023 is a clear indicator of the country’s robust economic resilience and potential. Such a positive outlook, especially in a challenging global economic climate, speaks volumes about the strength and stability of Turkey’s economy.

Moreover, the expectation of increased exports and a forecasted momentum gain in 2025 aligns perfectly with the long-term benefits of investing in Turkish real estate. As the economy grows, so does the demand for residential and commercial properties, promising lucrative returns for our investors.

The mention of inflation rates might raise eyebrows, but in a rapidly growing economy like Turkey’s, this is often a sign of dynamic market movements and opportunities for savvy investors who know how to navigate these waters.

At NotteGlobal.com, we understand the intricacies of the Turkish market and offer our expertise to help investors make the most of these promising conditions. We believe that the OECD’s positive outlook, combined with Turkey’s strategic location, diverse culture, and dynamic economy, makes now an opportune moment to invest in Turkish real estate.

Let’s embrace this opportunity and explore the potential that Turkey’s real estate market holds. Together, we can turn these forecasts into profitable realities.”