The rise in the Turkey’s stock market expected to continue in 2018
Professionals in the sector comment that Turkey’s economy has managed to move ahead together with the world markets despite the political and geopolitical shocks it has incurred in 2017. They state that economic data coming from the USA has relieved the emerging markets and Turkey. They say USA keeps growing with increasing employment. There is no pressure stemming from fees and retail prices thus not causing any increase in inflation. This environment is also best for Turkey. Because, Turkey is growing, but there is no pressure from the world to increase interest rates – or this pressure comes more slowly.
Looking ahead experts think FED (US Federal Reserve) will most likely practice 3 interest rate increases next year and one in 2019 and 2020 each and the world markets have not priced said increase, thus causing the dollar to depreciate in global markets.
Turkey on the other hand, is a country which imports capital from the world and uses foreign funds to finance itself meaning it needs to find money from abroad. Thus, the devaluation of the dollar is a positive development for Turkey.
Considering referred developments together with Europe’s growth experts do not have a bad prediction for Turkey’s economy in 2018. It is forecasted that Turkey will have a performance of 4.5 percent growth in 2018. As for inflation forecasts, it seems that Turkey’s performance may differ from that of the world.
Gürleyen said that they do not foresee very sharp declines in inflation next year, and that inflation will be 10.5 percent this year and 8.9 percent next year.
Experts do not foresee sharp declines in inflation next year, and they forecast inflation will be 10.5 percent this year and 8.9 percent next year.
