The report, entitled “Global Economic Prospects 2008” said that while growth of gross domestic product in most European countries would decline in the coming year, Turkey - along with Albania and Hungary - would buck the trend.
One of the main reasons for Turkey being able to maintain a strong rate of expansion was a predicted further easing in monetary policy, which the World Bank said was expected to strengthen domestic demand and lead to a pickup in growth.
According to the report, Turkey’s current account deficit would be 7.7 percent in 2008 and 7.6 in 2009.
The report said that many high income countries would only see GDP expand by a modest 2.2 percent this year, well down on the global average of 3.6 percent in 2007. The global economy was expected to expand by 3.3 percent in 2008.
The report also said that a weaker US dollar, the possibility of recession in the US and rising financial-market volatility could cast a shadow over this soft landing scenario for the global economy.
“These risks would cut export revenues and capital inflows for developing countries, and reduce the value of their dollar-investments abroad. In this context, the reserves and other buffers that developing countries have built up in past years may be needed to absorb unexpected shocks,” the report said.
