Due to the impact of the coronavirus pandemic, the Turkish economy, like many other countries, expects their economy to shrink this year. However, the European Bank for Reconstruction and Development (EBRD) has forecast that the Turkish economy will recover by 6% next year. The latest edition of the Regional Economic Prospects states: “Turkey is likely to experience a 3.5% reduction in 2020 due to the economic impact of the coronavirus pandemic.”
Recovery in Turkey 2021
A recent statement said: “The bank expects the country to recover quickly in 2021 with GDP growth of 6%. The prognosis largely depends on the duration and scope of social distancing measures to combat the virus. ”
Fall due to COVID-19 crisis
The European Bank for Reconstruction and Development (EBRD) has predicted that almost 40 economies in which it currently operates will shrink by an average of 3.5% this year due to the global health crisis, but predicts that this recovery will occur by 4.8% next year . It was said that the decline could be bigger than expected if the measures of social distancing must remain in force longer than expected.
Beata Javorcik, the EBRD’s chief economist, said that “the crisis has suffered a great blow, and getting out of it will be equally challenging. This is not the time to engage in economic nationalism and protectionism, but the time to shape a better future through international commitment, free trade, climate change mitigation and economic cooperation. ”
The EBRD is cautious about forecasting growth because it is subject to “unprecedented uncertainty” due to the global health crisis. In investment areas, commodity prices such as oil have also fallen. The institution issued a warning that “potentially significant long-term economic, political and social effects” could make the decline much more painful.
European Bank for Reconstruction and Development
Founded in 1991, the London-based bank was originally opened to help former Soviet bloc countries transition to free market economies, but has since expanded and now invests in developing economies from Central and Eastern Europe, the Middle East. North Africa, and Central Asia.
In 2019, the EBRD celebrated its tenth year of engagement in Turkey. Since its opening, it has invested almost 12 billion euros in various areas of the Turkish economy, almost all of which has been in the private sector. In the 38 economies the bank is investing in, Turkey’s 6.7 billion-euro portfolio is the largest. Last year, the bank secured 1 billion euros in debt and equity financing for Turkish projects.