WASHINGTON D.C. - The World Bank's 2003 Global Economic Expectations Report noted that in case of political stability and continuation of the economic programme by the new government, the economic growth can strengthen next year.
The report noted that the Turkish economy which shrank by 7.4 percent last year due to economic crisis, will probably grow by 4.1 percent in 2002. The Bank guessed the annual inflation figure in Turkey to be 27.9 percent this year.
The report noted that interest rates have to reduce to roll over the debts without any problem, adding that a tension in the Middle East (meaning Iraq) can cause instability in the Turkish economy.
Turkey was ranked among the lower-middle income group countries with a national income per capita less than 2.975 U.S. dollars.
Bulgaria, Romania, Russia, Yugoslavia, Albania, Bosnia, Macedonia and Belarus are in the same group with Turkey. The income per capita is better in other former Soviet Union countries when compared to Turkey.
The report stressed that the inflow of foreign capital and investment to Turkey decreased this year both due to the post-economic crisis atmosphere and also due to world conditions.