OECD sees Turkish growth at negative 2.9 percent in 2020

Turkey’s economy is expected to contract by 2.9 percent this year, the Organisation for Economic Co-operation and Development (OECD) said in its interim economic outlook published on Wednesday.

The 36-member organisation, comprising the world’s largest economies, had predicted in its earlier report that Turkey would contract by 4.8 percent. 

The Turkish economy is expected to grow by 3.9 percent next year, OECD said.

"The economic outlook remains exceptionally uncertain, with the COVID-19 pandemic continuing to exert a substantial toll on economies and societies," it said. It is "an unprecedented sudden shock in modern times", it said.

Turkish economic activity has slowed sharply after investors pulled out of the country on fears that the economy was overheating. The lira extended losses in August, and Moody's had cut Turkey's sovereign rating deeper into junk, assigning the lowest grade it has ever given to the country.