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Türkiye Economic Snapshot

Economic Forecast Summary (June 2022)

After a strong recovery in 2021, growth will moderate over the projection period. Very high inflation and declining consumer confidence will limit consumer spending. Investment will be held back by uncertainty about geopolitical factors and financial conditions. While exports will continue to benefit from the reallocation of global supply chains, the war in Ukraine will adversely affect external demand and commodity prices. Accommodative monetary policy coupled with high commodity and food prices will keep consumer inflation above 70% in 2022.

Reform Priorities (April 2021)

Going for Growth 2021 - Turkey

For a more inclusive and sustained recovery structural challenges such as low labour force participation of women, widespread informality, weak skills, rigid employment rules hampering reallocation and large share of low-quality employment have to be addressed. The COVID-19 related contraction in economic activity affected informal workers the hardest, as many work in contact-intensive services such as tourism, catering and retail trade.

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2021 Structural Reform Priorities

  • Labour market: Reduce the cost of employment of the low skilled
  • Education and skills: Improve quality and equity of educational achievement at all levels
  • Labour market: Reform employment protection legislation and strengthen active labour market policies, addressing the informal sector
  • Competition and regulation: Ease administrative burdens, price regulations and barriers to foreign investment and cross-border service trade
  • Environmental policy: Address environmental pressures caused by population growth, urbanisation, road transportation and expansion of coal power production

 

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Economic Survey of Turkey (14 January 2021)

Executive Summary

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