Fitch predicts Turkey’s year-end inflation forecast as 10.7 percent

Fitch has predicted Turkey’s end-2017 inflation forecast as 10.7 percent and its growth forecast as 4.7 percent. The credit rating agency Fitch Ratings mentioned in a presentation made before a conference organized in London that Turkey’s inflation for 2017 was forecasted as 10.7 percent and its growth was forecasted as 4.7 percent. Fitch also said Turkey would enjoy a stronger growth in the third quarter.

Speaking at Fitch Ratings’s Global Country Rating Conference in London, Fitch official said they did not anticipate early elections in Turkey before November 2019, adding they did not foresee the opposition winning the presidential election, either.

He stressed that the Turkish economy is resilient and added “Growth in the third quarter will be stronger in Turkey, and cyclical measures support recovery in the growth. Turkey’s fiscal measures are strong and there is area for action”. The official said that they expected the Turkish economy to grow by 4.7 percent at the end of this year and 4.1 percent next year and in 2019. Stating that Turkey can take quick measures against developments, the official said, “There are lessons we can get from Turkey on how to respond when external conditions change.”

Reminding that inflation is in double digits, the official said that one of the biggest causes of high inflation watching was the depreciation of the currency. He explained ,t was predicted that inflation would be 10.7 percent at the end of this year, 8.4 percent in 2018 and 7.4 percent in 2019. Emphasizing the importance of relations with the European Union (EU), he said negative developments in relation to the EU could also have an impact on macroeconomic data.