IMF projects Türkiye’s inflation to decrease by 2025
IMF takes a step against corruption, Washington, US, April 23, 2018. (AA Photo)
The International Monetary Fund (IMF) released its latest evaluation of Türkiye’s economy, citing a positive outlook for inflation reduction because of gradual policy adjustments by Turkish authorities.
The report follows the completion of Türkiye’s Article IV consultation on September 27, 2024.
Türkiye’s stronger economic policies boost confidence
The IMF noted that Türkiye‘s shift toward tighter economic policies has reduced imbalances and bolstered market confidence. Measures such as fiscal prudence, stronger revenue policies, and a shift in investor sentiment toward Turkish assets have strengthened Türkiye’s current account and reserves.
Risks and recommendations
Despite improvements, the IMF highlighted downside risks, including wage and price inertia, potential capital outflows, rising global energy prices and geopolitical tensions. The IMF advised continued fiscal consolidation and data-driven monetary policies to meet inflation targets.
Economic growth, inflation projections for Türkiye
Türkiye’s economy is projected to grow by 3% in 2024 and 2.7% in 2025. Inflation is expected to decrease to 24% by 2025 and further to 15% by 2029, with unemployment gradually declining to 9.2% by 2029.
