Estimating that the Turkish economy grew by 2.9 percent in 2018, OECD predicted a growth of 3.2 percent in 2020 after a 1.8 percent contraction in 2019. In the previous report, the expectation for this year was 0.4 percent contraction and 2.9 percent for next year.
Pointing out that the growth forecasts for Turkey continued to remain weak OECD mid-2018 noted that there had been a sharp decline in production and domestic demand since.
Stating that financial markets have stabilized and external competitiveness improved, the OECD, "But weak confidence, high debt service burden on companies, tight monetary policy and weak demand in Euro Area markets still put pressure on domestic and external demand," it said.
The report emphasized that it is necessary to maintain a tight monetary conditions for maintaining the sustainability of the budget position or external position continued concerns about emerging market economies such as Argentina and Turkey in investor confidence. Nominal interest rates, inflation may go down as the higher levels of inflation, indicating that the OECD, but there is a very small area for lower interest rates, it said.
The report also said, "This should be the priority in economies, to make reforms that will strengthen the outlook for budget and financial sustainability in the medium term".