The International Monetary Fund upgraded its economic growth forecast for Turkey this year, but warned that the country remains susceptible to risks.
The Turkish economy is estimated to grow about 0.25% in 2019, a sharp reversal from the IMF's previous projection of a 2.5% contraction. The IMF attributed the revision to the country's expansionary policy stimulus and a recovery in the lira, which saw a sizeable depreciation last year.
However, the IMF warned Turkey against external and domestic risks, and called for reforms to sustain its recovery. "The current calm appears fragile," the fund said in a statement following its annual visit to Turkey.
"Despite the recent turnaround, without consistent implementation of a comprehensive package of reforms, medium-term growth is likely to remain subdued given balance-sheet strains."
The organization added that lowering inflation remains policymakers' main challenge, describing the central bank's recent easing actions as "too aggressive."
