Turkey’s GDP Expected to Contract by 2.5% in 2020: European Commission

Turkey’s gross domestic product (GDP) is anticipated to contract by 2.5% in 2020, according to the European Commission’s (EC) Autumn 2020 Economic Forecast report released recently, as reported by local media.

The latest GDP forecast is an upgrade of EC’s May 2020 forecast of a 5.4% economic decline for 2020. Although activity rebounded quickly over June to September 2020, EC noted that vulnerabilities and withdrawals of policy stimulus will weaken the strength of economic recovery.

Meanwhile, Turkey’s GDP is forecast to grow by 3.9% in 2021 and 4.5% in 2022, according to EC. A faster economic recovery is expected in 2021, although withdrawal of the monetary...