The European Bank for Reconstruction and Development (EBRD) on Wednesday projected 2.5% economic growth for Turkey in 2020 as the recovery from the ongoing slowdown is likely to be gradual.

The bank noted a significant improvement in macroeconomic stability and decline in inflation rate in the country, according to its latest Regional Economic Prospects report.

It added that “a banking crisis” has eased thanks to the stabilization of the lira.

The bank also predicts a contraction of around 0.2% this year in the Turkish economy.

It stated that the unpredictable domestic and geopolitical environment creates uncertainty for the

Read more: European Bank: Turkish economy to grow 2.5% in 2020