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"Turkey's economy may expand 6.8 percent this year, the Organization for Economic Cooperation and Development said, almost doubling its previous forecast after a rebound in exports.
The Paris-based OECD had predicted 3.7 percent growth in a November study. The strength of exports together with a revival in consumer spending have helped the economy revive "sharply" after a 4.9 percent contraction last year, the group said in a report published Wednesday.
Turkey slashed interest rates to a record low last year and offered tax breaks to consumers buying items such as cars and home appliances to pull the economy out of recession. Exporters have sought to diversify their markets, targeting Russia and oil-producing Middle East nations as demand in Turkey's main European trading partners remained weak.
Exports rose 23 percent from a year earlier to $35.1 billion in the first four months of 2010, according to the Turkish Assembly of Exporters. It will be "crucial" for exporters to keep prices competitive as the Turkish Lira gains against the euro, the OECD said.
Consumer confidence rose to the highest for more than two years in April, official statistics show. The OECD forecast a 5.7 percent increase in private consumption this year. The benchmark stock index jumped 12 percent between January and April, before losing the gains this month as the European debt crisis worsened.
