Jul 18 2018

Signs indicate economic overheating, IMF researcher warns Turkey

Signs indicate Turkey’s economy is in danger of overheating after a period of high growth, International Monetary Fund Research Department Deputy Director Gian Maria Milesi-Ferretti has warned.

The IMF revised its forecast for Turkey’s growth down 0.2 points to 4.2 percent earlier this week, down from the 7.4 percent registered last year.

Turkey’s 2017 performance was excellent, but there are many indicators pointing to extreme overheating, including the widening current account deficit and rising inflation, Turkish secularist daily newspaper Cumhuriyet quoted Milesi-Ferretti as saying.

However, the country’s growth rate this year has been positive compared to the negative market outlook for emerging economies, Miles-Ferretti added.