World Bank lifts Turkey's 2025 growth forecast as global outlook dims
The World Bank on Tuesday revised its growth forecast for Türkiye upward for 2025, citing continued economic momentum and favorable external conditions, even as it slightly lowered expectations for next year.
In its twice-yearly Global Economic Prospects report, the 189-country lender said it now sees the Turkish economy expanding by 3.1% in 2025, up from its previous estimate of 2.6% made in January.The upward revision stemmed from what the bank said was the previous momentum, including stronger-than-expected growth in the final quarter of 2024, and lower global oil prices.
Türkiye's growth eased slightly to 3.2% in 2024, mainly due to aggressive monetary tightening, aimed at combating high inflation that has almost halved over the last year.Treasury and Finance Minister Mehmet Şimşek on Wednesday linked the improved expectations to confidence in the government's economic program.
'While the World Bank has downgraded growth forecasts for nearly 70% of economies for 2025, it has increased Türkiye's growth forecast by 0.5 percentage points,' Şimşek wrote on the social media platform X.
'We will resolutely continue with our policies that reinforce the foundations of sustainable high growth.' The World Bank slashed its global growth forecast for 2025 by four-tenths of a percentage point to 2.3%, saying that higher tariffs and heightened uncertainty posed a 'significant headwind' for nearly all economies.
The lender lowered its estimate for nearly 70% of all economies – including the U.S., China and Europe, as well as six emerging market regions – from the levels it projected six months ago before U.S. President Donald Trump took office.
In a forward to the latest version of the report, World Bank chief economist Indermit Gill wrote that the global economy has missed its chance for the 'soft landing' – slowing enough to tame inflation without generating serious pain – it appeared headed for just six months ago.
'The world economy today is once more running into turbulence,' Gill wrote. 'Without a swift course correction, the harm to living standards could be deep.'
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