January 6 (SeeNews) - The World Bank said it expects Turkey's economy to expand by 4.5% in 2021, up 0.5 percentage points from its October projection.
"Turkey’s economy avoided a contraction in 2020, with activity growing an estimated 0.5% amid a substantial expansion in credit," the World Bank said in its January 2021 Global Economic Prospects report published on Tuesday.
In its previous forecast, the World Bank said it expects Turkey's gross domestic product (GDP) to fall by 3.8% in 2020.
Sharp acceleration in new COVID-19 cases, weaker than expected international tourism, and tighter than anticipated monetary policy weigh on the recovery of the country's economy, the World Bank noted in its current report.
The World Bank sees Turkey's economic growth accelerating to 5.0% in 2022.
According to the report, economic activity in Europe and Central Asia (ECA) is estimated to have contracted 2.9% in 2020 in the wake of disruptions related to the COVID-19 pandemic.
"Due to a resurgence of COVID-19, the pace of recovery in 2021 is projected to be slower than originally anticipated, at 3.3%. Growth is then expected to rise to 3.9% in 2022, as the effects of the pandemic gradually wane and the recovery in trade and investment gathers momentum," the World Bank said.