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Turkey Economic Monitor, April 2021: Navigating the Waves

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dc.contributor.authorWorld Bank
dc.date.accessioned2021-04-26T17:00:31Z
dc.date.available2021-04-26T17:00:31Z
dc.date.issued2021-04
dc.description.abstractCOVID-19 (coronavirus) has taken a heavy toll on Turkey, as it has across much of the world. New estimatesof total COVID-19 cases indicate that the epidemic grew rapidly over November and into December, before a new round of restrictions were put in place to control the spread of the virus in late December. The expansion of COVID-19 in late 2020 followed a similar path to many European countries. Turkey’s economic growth performance in 2020 was strong compared to other countries, but poverty spread, and unemployment became more prevalent. Turkey’s GDP grew by 1.8 percent in 2020, which was the fastest amongst G20 countries in 2020 aside from China. This was on the back of one of the strongest economic rebounds in the second half of 2020, largely achieved in the third quarter, but with positive growth continuing into the fourth quarter. Despite measures to support jobs and households, labor market and poverty outcomesnevertheless deteriorated. Indicators of domestic demand showed some signs of economic growth cooling early in 2021, although supply side measures such as industrial output remainedrobust. Turkey responded to COVID-19 with a large economic stimulus program, focused on credit channels. In fiscal terms, Turkey’s COVID-19 stimulus package amounted to nearly 12 percent of GDP when including tax deferrals and contingent liabilities. This is larger than the average for emerging market, G20 countries, and is similar in size to the stimulus packages of the United States, Australia and Canada. While the program utilized a broad range of fiscal tools, uniquely amongst G20 countries, Turkey’s support was overwhelmingly provided through the banking sector, and was not realized as direct fiscal costs on the budget, but ascontingent liabilities to the government in future. Credit stimulus, loose monetary policy, andother regulatory measures to promote credit expansion drove a sharp increase in economicactivity in late 2020. In addition to government measures to recapitalize a partial credit guarantee fund and state banks, policy interest rates were maintained below inflation and a series of financial regulatory measures introduced that incentivized banks to increase lending activities. The combined effect of these policies was to generate one of the largest credit expansions that the world saw in 2020.en
dc.identifierhttp://documents.worldbank.org/curated/en/802801619202380516/Turkey-Economic-Monitor-Navigating-the-Waves
dc.identifier.doi10.1596/35497
dc.identifier.urihttps://hdl.handle.net/10986/35497
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectECONOMIC GROWTH
dc.subjectCORONAVIRUS
dc.subjectCOVID-19
dc.subjectMONETARY POLICY
dc.subjectECONOMIC SHOCK
dc.subjectPANDEMIC IMPACT
dc.subjectPANDEMIC RESPONSE
dc.subjectCURRENCY DEPRECIATION
dc.subjectFISCAL TRENDS
dc.subjectJOB LOSS
dc.subjectINFLATION
dc.subjectPOVERTY
dc.subjectVULNERABILITY
dc.subjectCOVID-19 VACCINATION
dc.titleTurkey Economic Monitor, April 2021en
dc.title.subtitleNavigating the Wavesen
dc.typeReporten
dc.typeRapportfr
dc.typeInformees
dspace.entity.typePublication
okr.crossref.titleTurkey Economic Monitor, April 2021
okr.date.disclosure2021-04-23
okr.date.doiregistration2025-05-07T12:23:48.011572Z
okr.doctypeEconomic & Sector Work::Economic Updates and Modeling
okr.doctypeEconomic & Sector Work
okr.docurlhttp://documents.worldbank.org/curated/en/802801619202380516/Turkey-Economic-Monitor-Navigating-the-Waves
okr.guid802801619202380516
okr.identifier.externaldocumentum090224b08852832f_2_0
okr.identifier.internaldocumentum33022832
okr.identifier.report158505
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/802801619202380516/pdf/Turkey-Economic-Monitor-Navigating-the-Waves.pdfen
okr.region.administrativeEurope and Central Asia
okr.region.countryTürkiye
okr.topicHealth, Nutrition and Population::Disease Control & Prevention
okr.topicMacroeconomics and Economic Growth::Business Cycles and Stabilization Policies
okr.topicMacroeconomics and Economic Growth::Economic Growth
okr.topicMacroeconomics and Economic Growth::Fiscal & Monetary Policy
okr.topicMacroeconomics and Economic Growth::Inflation
okr.topicPoverty Reduction::Employment and Shared Growth
okr.topicPoverty Reduction::Inequality
okr.topicSocial Protections and Labor::Employment and Unemployment
okr.unitEFI-ECA-Regional Director (EECDR)
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