Automotive August 2021

World Bank
revises Turkey
growth forecast
upwards
The World Bank has raised its growth
projection for the Turkish economy by 0.5
percentage points to 5 percent for 2021.
“In Turkey, following three years of
subdued growth amid recurring financial
market pressures and the COVID-19 crisis,
growth is projected to rise to 5 percent
in 2021, as exports benefit from firming
external demand, particularly in the euro
area,” the bank said in its latest Global
Economic Prospects report on June 8.
“The expansion is then set to moderate
to 4.5 percent in 2022, with activity
supported by a gradual pick up in domestic
demand,” it said. The forecast masks
growing vulnerabilities, read the report,
adding: “Economy’s vulnerabilities include
reoccurring COVID-19 outbreaks and a
slowdown in vaccination progress, weak
international tourism, sharp tightening
of external financing conditions, and a
recent rise in policy uncertainty, especially
about monetary policy.” The World Bank
also increased its global economic growth
forecast to 5.6 percent for this year, up
1.5 percentage points from its previous
forecast. The bank forecast the global
economy will grow by 4.3 percent next
year and 3.1 percent in 2023. As the global
economy contracted 3.5 percent in 2020
due to the pandemic, the world is expected
to see the strongest post-recession pace in
80 years, said the bank.
“The recovery is underpinned by steady but
highly uneven global vaccination and the
associated gradual relaxation of pandemiccontrol
measures in many countries, as well
as rising confidence,” it said.
The rebound will mainly come from major
economies such as the United States (6.8
percent) and China (8.5 percent).
The GDP in the eurozone is expected to
increase by 4.2 percent this year, the bank
said.
August 2021 46