Duvar English/Anadolu Agency

The Organization for Economic Co-operation and Development (OECD) has upgraded its gross domestic product (GDP) predictions for the Turkish economy for this year, next year and 2021.

In the latest issue of its Economic Outlook report, the OECD changed its 2019 forecast for Turkey to a 0.3 percent growth from a contraction of 0.3 percent in the September projections.

“Growth has continued to pick up over recent months. Substantial government stimulus is lifting domestic demand more vigorously than previously anticipated and currency depreciation is supporting exports,” the report said.

“Yet, weak external trade demand, geopolitical uncertainties and impaired private balance sheets are projected to keep GDP growth at around 3 percent, well below potential growth which itself has weakened and which may decline further due to increased policy-related distortions in the economy. Investor confidence remains fragile and investment has declined sharply,” it added.

Turkey’s economy is foreseen to grow 3.2 percent in 2021.

The OECD also advised Turkey to make the macroeconomic policy framework simplified and more transparent to rebuild domestic and international confidence.

In its report, the organization expected the world economy to expand at slowest pace of a decade in 2019 and 2020.

World economic growth is estimated to hit 2.9 percent for both this year and next year, and 3 for 2021, the report said.

The projection for 2020 was downgraded from 3 percent in its previous report. 

“Trade conflict, weak business investment and persistent political uncertainty are weighing on the world economy and raising the risk of long-term stagnation,” it said.