World Bank published its Global Economic Prospects report for January 2017. The report reveals that the World Bank growth expectation for Turkey in 2017 is down to 3 percent, with a downward revision of 0.5 percent from a previous estimate of 3.5 percent. The bank also introduced a 0.1 downward revision for 2018 growth projections.

According to the report, Turkey will grow 3 percent in 2017, 3.5 percent in 2018 and 3.7 percent in 2019. The institution also observed that the Turkish economy expanded by 2.5 percent in 2016.

With regards to the reasons for decreasing its growth estimates for Turkey, the World Bank cites decreased economic activity in the third quarter of 2016 due to the failed coup attempt of July 15, which resulted in a contraction for the first time since 2009.

The basic scenario foresees that the steep contraction in the Turkish economy will gradually stop and claims that if geopolitical tensions delay the realization of necessary reforms, long-term growth expectations might be negatively affected.

The report estimates that growth in 2017 will increase to 3 percent and with regained confidence, the rate will reach 3.6 percent in 2018-2019.

Meanwhile the World Bank is forecasting the global economy will accelerate slightly in 2017 after turning in the worst performance last year since the 2008 financial crisis.

The 189-nation lending agency said Tuesday that the global growth should expand at a 2.7 percent annual rate this year. That is down from the bank's June forecast for 2.8 percent growth this year, but it's better than last year's 2.3 percent growth.