Istanbul: The World Economic Situation and Prospects report, released on Wednesday, states that the UN anticipates Turkish inflation to decline to an average of 42.4% by the end of the year, a figure that is significantly higher than the country's own official projections.

The country's plan to fight inflation by lowering interest rates is called into question by the findings of the UN study. In an effort to promote economic growth, increase exports and investment, as well as combat unemployment, Turkey started lowering interest rates in 2021.

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However, the strategy caused a crisis, which resulted in the national currency losing nearly 30% of its value in one year. Turkish price growth reached an all-time high of 85.5% in October 2022 before slightly slowing to 64.3% in December.

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The official forecast from Ankara predicts that inflation will slow to 24.9% this year and further decline to 13.8% in 2024. However, economists anticipate a decline that is more gradual. Housing (79.83%), food and non-alcoholic beverages (77.87%), and transportation (54.45%) saw the biggest price increases in 2022.

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According to the UN report, the Turkish economy will expand by 3.7% this year and 3.5% in 2024.