Türkiye cuts growth forecast, raises inflation target for 2024

ANKARA, Sept. 5 (Xinhua) — The Turkish government on Thursday lowered its economic growth forecast for 2024 to 3.5 percent while raising its expected inflation rate for the year to 41.5 percent.
“In 2024, growth is expected to be 3.5 percent due to rising tensions in the region,” said Turkish Vice President Cevdet Yilmaz at a press conference.
Last year, the government projected a 4 percent growth rate for the Turkish economy in 2024.
Yilmaz also noted that the growth forecast for 2025 has been revised down from 4.5 percent to 4 percent, and for 2026 from 5.0 percent to 4.5 percent. Additionally, the 2024 inflation target was raised from 33 percent to 41.5 percent.
The inflation forecast for 2025 was increased from 15.2 percent to 17.5 percent, and for 2026 from 8.5 percent to 9.7 percent, he said.
“The effects of the disinflation process started as of June 2024, in line with our projected timetable,” Yilmaz added.
Türkiye has been grappling with rising inflation and one of the worst cost-of-living crises in its history. Since June 2023, the central bank has raised its key interest rate from 8.5 percent to 50 percent, tightening monetary policy.
Türkiye’s annual inflation rate moderated to 51.97 percent in August, marking its lowest level in a year. The figure, released by official data on Tuesday, came in slightly below market expectations. ■