OECD sees Turkish growth at 5.3% this year


The Organisation for Economic Co-operation and Development said Turkey’s economy would probably grow 5.3 percent this year after it expanded an estimated 6.9 percent in 2017.

The 35-member OECD increased its forecast from a previous 4.5-5 percent in its interim global economic outlook for 2018 published on Tuesday. It compared with average estimated growth of 4.1 percent for the G-20 group of industrialised nations.

The growth estimate put Turkey on a par with Indonesia, though it lagged India (7.2 percent) and China (6.7 percent).

Turkish President Recep Tayyip Erdoğan is seeking to spur economic growth through loan guarantees and tax incentives ahead of elections, earmarked for November next year. His government estimates economic growth in 2017 may have exceeded 7 percent.

Some economists have warned that Turkey’s economy is overheating, pointing to double-digit inflation and a swelling current account deficit. The government says the concerns are unwarranted and based on outdated Western economic theories that wrongly call for higher interest rates to defeat inflation.

The OECD forecast that Turkey’s economic growth would slow to 5.1 percent in 2019.

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