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Turkish economy will contract 3.8 percent this year, rebound with 5 percent next: World Bank

A teller holds Turkish lira banknotes at a currency exchange office in Istanbul on August 13, 2018. Turkey's troubled lira tumbled on August 13 to fresh record lows against the euro and dollar, piling pressure on stock markets on fears the country's crisis could spill over into the world economy. / AFP PHOTO / Yasin AKGUL

The World Bank said it expects Turkey’s economy to contract by 3.8 percent in 2020 after projecting 0.5 percent growth in its previous estimate made in April, the SeeNews website reported.

Growth is expected to pick up next year, with an estimated rate of 5 percent, as domestic demand gradually improves, the World Bank said in its June 2020 Global Economic Prospects report published on Monday.

The expected decline in 2020 comes as a result of a continued fall in investments and exports as well as the disruption of normal economic activity because of coronavirus countermeasures.

Measures taken to counter the economic effects of the coronavirus crisis, including increased health care spending, assistance for utility payments and increased social protection, are equal to 9 percent of Turkey’s GDP, the bank said.

Turkey’s GDP grew 0.9 percent year-on-year in 2019.

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