Fiscal, monetary policies pushed economy 'to a much stronger-than-expected rebound in growth,' bank says.
"The significant rebound in Turkey’s growth last year -- to 6.7 percent, from 3.2 percent in 2016 -- was supported by fiscal stimulus aimed at expediting recovery from the economic repercussions of the 2016 failed coup attempt," according to the bank’s Global Economic Prospects report.
Export growth also increased due to higher demand from the European Union (EU) and Turkey's currency depreciation in 2016, the World Bank said.
In addition, strong growth the working-age population supports a positive outlook for the country's potential growth.
The World Bank warned that rising disagreements among some countries with the EU could deter international investors and lead to an end to EU accession for Turkey.
"Growth in Turkey is projected to moderate to around 3.5 percent in 2018, as the impact of the 2017 fiscal measures fades," the report said.
The Word Bank expects Turkey's economy to expand 4 percent in 2019 and 2020.