IMF revises up Turkish economy's 2024 growth forecast to 3.6% from 3.1%

By Ovunc Kutlu

ISTANBUL (AA) - The International Monetary Fund (IMF) revised up Turkish economy's growth forecast for this year to 3.6%, according to its World Economic Outlook Update report released Tuesday.

The upward revision is 0.5 percentage points above the previous estimate of 3.1% made in April.

The economic forecast for 2025 on the other hand, was revised down 0.5 percentage points to 2.7% from the earlier expectation of 3.2%.

The IMF, in addition, revised down its 2024 growth forecast for the American economy to 2.6% from 2.7%, while the growth estimate for 2025 was kept unchanged at 1.9%.

"Growth is expected to slow to 1.9 percent in 2025 as the labor market cools and consumption moderates, with fiscal policy starting to tighten gradually," said the report. "By the end of 2025, growth is projected to taper to potential, closing the positive output gap."

The euro area is expected to grow 0.9% this year, an upward revision of 0.1 percentage point from the previous estimate, "driven by stronger momentum in services and higher-than-expected net exports in the first half of the year," according to the report.

Economic growth in the euro area is projected to increase to 1.5% in 2025.