WB estimates Turkey's growth rate at %3.6 in 2013

According to WB's Global Economic Prospects Report, Global GDP is expected to expand about 2.2 percent this year and strengthen to 3.0 percent and 3.3 percent in 2014 and 2015.

WB expected Turkey's GDP growth rate 3.6 percent in this year because of loose macro economic policy; however, WB had expected Turkey's growth at 4 percent in the Global Economic Prospects Report in last January.

The report said loosening fiscal policy in Turkey resulted in a surge in inflation rate up at 9.7 percent in the first quarter of 2013 with a core inflation rate of 6.5 percent. 

- Weak growth in high-income countries

For high-income countries, fiscal consolidation, high unemployment and still weak consumer and business confidence will continue to dampen growth this year, while growth in the developing world will be solid but weaker than during the pre-crisis boom period, the WB report said, predicting a modest growth rate of 1.2 percent in 2013, firming to 2.0 percent in 2014 and 2.3 percent by 2015.

- Real-side activity sluggish in Europe

The report said real-side activity remains sluggish, especially in Europe, where it is being held back by weak confidence and continued banking sector and fiscal restructuring.

The Euro zone is now estimated to contract by 0.6 percent in 2013, compared with the previous forecast of 0.1 percent, and is projected to slowly improve to a modest 0.9 percent in 2014 and 1.5 percent in 2015, the report said.

- In the developing world growth is solid but muted

The story for developing countries is, for the most part, rosier, the report said, adding developing economies have more or less completely recovered from the 2008 crisis and less volatile external conditions are expected to yield a gradual acceleration of activity in developing regions.

The report estimated developing-country GDP to be around 5.1 percent in 2013, strengthening to 5.6 percent and 5.7 percent in 2014 and 2015, respectively.