World Bank: Europe, Central Asia growth to slow, Turkey forecast down

According to a report released by the World Bank on Tuesday, the growth performance of European and Central Asian countries is negatively influenced by low oil and commodity prices in the eastern half of the region, a decline in investment rates in the EU and the continuous structural challenges in all countries. Therefore, the World Bank indicated a modest growth estimate of 1.6% in 2016 for this region when compared to the 1.4% of 2015.

In its Europe Central Asia Economic Update, the Bank also forecast a growth rate of 1.5% and 1.8% for 2017 and 2018 respectively.

As for Turkey, the World Bank forecast private investment to weaken this year, especially after the failed coup that has had a negative impact on the investor confidence, the report reveals. It also expects private consumption to decrease further in Q3 due to the uncertainty which drives consumers to cut spending and save more. Based on these, the Bank decreased its growth forecast for Turkey in 2016 to 3.1% from 3.5%.