IMF Increases Growth Forecast for Turkish Economy

The International Monetary Fund has revised its forecast for growth in the Turkish economy. The IMF now forecasts that the Turkish economy will grow 7.8% this year and 3.6% next year. In October last year the IMF forecast growth of just 3.7% this year, and revised this up to 5.2% in April this year.

"In emerging Europe, growth in economies that experienced the mildest downturns (Poland), and others that faced the crisis with relatively strong household and bank balance sheets (Turkey), is projected to continue gaining strength, helped by the normalization of global trade and capital flows," IMF report said.

According to Turkstat data, after coming out of recession with a 6.7% year on year GDP growth in the final quarter of last year — ending a year-long recession –, Turkish GDP was 11% higher in the middle of this year compared to last year. This was made up of 11.4% year on year growth for the first quarter and 10.3% year on year growth in the second quarter — matching that of China.

This rapid growth has made Turkey the fastest growing economy in Europe, and of all the member countries of the Organisation for Economic Cooperation and Development. According to the IMF Turkey will remain the fastest growing economy in Europe.

Reading between the lines of the IMF report you can see Turkey bridging the gap between rapid, emerging market growth, and developed, established market stability.

The IMF expects advanced (established) economies to grow by 2.7% this year and 2.2% next year, while emerging economies are to grow 7.1% and 6.4%. Turkey is therefore to see emerging market growth this year, and established market growth this year.

This is likely because the government of Prime Minister Recep Tayyip Erdogan is using this period of rapid growth to pay down debt, gain firm control of inflation, and solidify the economic future of the Turkish nation.

The fact that he is succeeding in these aims is making Turkey property increasingly popular with foreign buyers. It currently offers buyers great growth potential, and great stability and security in their purchase.