EBRD cuts growth forecast for crisis-hit Turkey

LONDON, Jan 21 (AFP): The European Bank for Reconstruction and Development (EBRD) on Tuesday cut its economic growth forecast for Turkey, blaming the impact of a deep political crisis and tighter US monetary policy.

The London-based EBRD also trimmed its gross domestic product (GDP) growth forecast for its operating zone, citing capital outflows as the US Federal Reserve prepares to taper its vast stimulus.

Turkey's economy was nevertheless expected to grow by 3.3 per cent in 2014, the EBRD said in a statement.

That compared with the prior forecast of 3.6 per cent, and followed expansion of 2.2 per cent and 3.7 per cent in 2012 and 2013 respectively.

The EBRD also expects average GDP growth of 2.7 per cent in 2014 for its operating region that mostly comprises the former Soviet bloc.