ISTANBUL: The Organisation for Economic Cooperation and Development (OECD) said on Tuesday it expects the Turkish economy to shrink 2.6pc this year, lowering its forecast from a previous prediction of a 1.8pc contraction.
It also lowered its growth forecast for 2020 to 1.6pc from a previous estimate of 3.2pc in March, citing continued investor uncertainty after local elections.
A currency crisis last year wiped nearly 30pc off the lira's value against the dollar, helping to tip the economy into recession.
The lira has weakened further in 2019.
A measured recovery is projected from the second half of 2019 onwards in the absence of new shocks to confidence, the OECD said, adding that substantial risks remain around the projected recovery of growth.
"Regaining the confidence of households, businesses, and domestic and international investors in the quality and predictability of economic policies and the credibility of market institutions is crucial," the OECD said in its Economic Outlook report.
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