Ankara 5th of September : Turkey sharply raised the forecast for inflation in 2022 to 65 percent from 9.8 percent forecast one year ago according to the government’s program that was that was published in the Official Gazette.The three-year Medium Term Program, which was jointly developed by the Ministry of Treasury and Finance and the Directorate of Strategy and Budget and Budget, anticipates that the country’s inflation rate to drop to 24.9 percent in 2023.It will fall to 13.8 percent in 2024, and 9.9 percent in 2025, as reported by Xinhua news agency.
The most recent inflation forecast in the 2022 program revealed an increase of 9.8 percent forecast in the report a year ago, however it was only a little over the central bank’s forecast in July of a annual inflation rate would be 60.4 percent.
The program projects Turkey’s economy to increase by 5 percent in 2023, and 5.5 percent in 2024 and 2025.
The unemployment rate in Turkey is predicted to be 10.8 percent in 2022, 10.4 per cent in 2023, 9.9 per cent in 2024, and 9.6 percent in 2025, the publication notes that the country’s trade deficit is expected to grow to $105 billion in 2022 and $80 billion in 2023.
The program suggests that an increase in productivity and production will reduce price increases, of which food prices would fall to single figures in three years and the Turkish Lira would be stable.
The economy of Turkey grew by 7.6 percent year on the previous year in the second quarter.The country’s annual inflation reached 79.6 percent in July which was the highest in the last 24 years.
Turkey faces financial difficulties never seen in many years, with the Turkish lira falling since the outbreak of the Covid-19 pandemic in the beginning of 2020.
The war between Russia and Ukraine that began in the latter part of February aggravated the situation in Turkey, raising energy prices to record levels.
Despite the high inflation rate however, the country didn’t increase interest rates like many central banks did to combat the rising rate of inflation.
The central bank shocked markets once more with cuts of 100 basis points of the rate to 13.3.
