According to the estimation of the European Bank for Reconstruction and Development (EBRD), the Turkish economy will grow by 5.5% this year.
The Bank revised its growth forecasts upwards in the “Regional Economic Outlook in EBRD Countries” report on the regions in which it operates.
Estimating an average of 4.2% economic growth in developing countries in Eastern Europe, Central Asia and North Africa this year, the EBRD announced this rate as 3.6 percent in October 2020. The EBRD’s economic growth projection for 2022 in these countries was 3.9.
Acceleration of vaccination boosts economic growth
In the revision of economic growth forecasts, the acceleration of vaccination against the new type of coronavirus (Covid-19) epidemic, the recovery in industrial production and retail sales, and the increase in travels to these countries.
Export is the driving force of economic growth in Turkey
The bank predicted that the Turkish economy will grow by 5.5 percent this year. This rate was revised upwards by 0.5 percent compared to the forecast in October 2020.
It is estimated that Turkey will show an economic growth of 4 percent in 2022.
In the report, it was noted that while the increase in exports was effective in the growth projected for this year in the Turkish economy, the weak financial situation of the households limited domestic demand and tourism could recover more slowly than expected.
This year, the EBRD’s economic growth is 4.5 percent in Central Asian countries, 4.8 percent in Central Europe and the Baltic countries, 2.8 percent in Eastern Europe and the Caucasus, 3.3 percent in Russia, 5 percent in South East European Union countries, 2 estimated 3.5 percent in the Eastern Mediterranean and 5.2 percent in the Western Balkans.
In her assessment of the report, EBRD Chief Economist Beata Javorcik stated that the revised growth projections give reasons for optimism. While some countries performed relatively better economically with the effect of exports, especially economies dependent on tourism were deeply injured. used the phrases.
Funding will go to “green” projects
EBRD President Odile Renaud-Basso, on the other hand, made a statement to the press and said that according to her predictions, the economic recession was less than expected.
Noting that they expected a better recovery than the economic growth projections they announced in October last year, Renaud-Basso said that the financial and economic development packages were effective in this growth.
Renaud-Basso stated that the post-epidemic recovery creates an opportunity to focus on investments and stated that it is critical that investments are made in line with the Paris Agreement.
Renaud-Basso, reminding that their strategy as a bank in 2025 is to consist of green projects at least half of their portfolio, said, “However, we currently want to accelerate our activity in this field with a more inclusive and complementary approach, which means being fully compliant with the Paris Agreement by the end of 2022 at the latest. In other words, we will consider that every project we will finance is compatible with the Paris Agreement,” he said.
Renaud-Basso said that the amount of financing they provide in the countries where they operate is around 10 billion euros per year, and that this figure reached 11 billion euros last year due to the increasing need due to the epidemic.
Green growth-oriented projects come to the fore in Turkey
Providing information about their activities in Turkey, Renaud-Basso stated that the Turkish private sector has a very active structure and that they focus on the private sector in their investments, “95% of our investments are in private sector projects. We will continue to provide financing for environmental projects and green investments in Turkey. ” said.