ISTANBUL: The International Monetary Fund (IMF) revised up Turkish economy’s growth forecast for this year to 3.6%, according to its World Economic Outlook Update report released Tuesday.
The upward revision is 0.5 percentage point above the previous estimate of 3.1% made in April.
The economic forecast for 2025 on the other hand, was revised down 0.5 percentage point to 2.7% from the earlier expectation of 3.2%.
The IMF, in addition, revised down its 2024 growth forecast for the American economy to 2.6% from 2.7%, while the growth estimate for 2025 was kept unchanged at 1.9%.
“Growth is expected to slow to 1.9 percent in 2025 as the labor market cools and consumption moderates, with fiscal policy starting to tighten gradually,” said the report. “By the end of 2025, growth is projected to taper to potential, closing the positive output gap.”
The euro area is expected to grow 0.9% this year, an upward revision of 0.1 percentage point from the previous estimate, “driven by stronger momentum in services and
higher-than-expected net exports in the first half of the year,” according to the report.
Economic growth in the euro area is projected to increase to 1.5% in 2025.
In Japan, the expectation for 2024 economic growth is revised downward by 0.2 percentage point to 0.7% from 0.9%, with the downward adjustment “largely reflecting temporary supply disruptions and weak private investment in the first quarter,” said the IMF.
Japan’s growth estimate for next year was kept unchanged at 1%.
“In China, resurgent domestic consumption propelled the positive upside in the first quarter, aided by what looked to be a temporary surge in exports belatedly reconnecting with last year’s rise in global demand,” it added.
For China, the economic growth forecast is revised upward to 5% in 2024 from 4.6%, mostly due to a rebound in private consumption and strong exports in the first quarter of this year, according to the financial agency.
In 2025, however, GDP is projected to slow down to 4.5% and to continue decelerating over
the medium-term to 3.3% by 2029, “because of headwinds from aging and slowing productivity growth,” it added.
The forecast for economic growth in India for this year has also been revised upward to 7.0% from 6.8%, with the change reflecting “carryover from upward revisions to growth in 2023 and improved prospects for private consumption, particularly in rural areas,” according to the report.
The IMF kept the global economic growth forecast for 2024 unchanged at 3.2%, while the estimate for 2025 was slightly revised up by 0.1 percentage point to 3.3%.
Source: Anadolu Agency