In its half-yearly economic outlook, the Paris-based organization said Turkey's economy had slowed in 2008 as domestic demand shrank due to a global financial crisis and turmoil in financial markets. The report also added that economic growth in Turkey would rise to 4.5 percent in 2010 since fallout from the financial crisis was expected to clear.

On developed markets, the report predicted that the financial crisis will likely push them into their worst recession since the early 1980s. Furthermore, the report stated that economic output will probably shrink by 0.4 percent in 2009 for the 30 market democracies that make up its membership, against the 1.4 percent growth prediction for 2008. As a result, the OECD said it supported fiscal rescue measures, including tax cuts, provided they were targeted and temporary.

The OECD said the number of unemployed across its members could rise by 8 million over the next two years and that there is a risk, "albeit small," that some countries will experience deflation -- falling prices. According to the OECD, the US was likely to contract by 0.9 percent in 2009 following a 1.4 percent expansion this year. Japanese output is only expected to contract by 0.1 percent in 2009 following 0.5 percent growth this year, while the 15-nation Eurozone will likely shrink by 0.6 percent next year after 1.0 percent growth this year. In Japan, the recession, which started in the second quarter of 2008, is only expected to last through to the first quarter of 2009, when output is expected to rebound by an annual rate of 0.8 percent. However, output is set to stagnate over the second half of 2009 as the global economic downturn and the recent rise in the yen hits demand for Japanese goods.

Because of the anticipated bounce-back in growth by the second half of next year, the OECD projected that economic output across its membership will rise in 2010 by 1.5 percent.