Published On: Sat, Nov 16th, 2019

Leading finance institutions announce positive forecasts for Turkey’s economy

Leading finance institutions announce positive forecasts for Turkey’s economy

Talking about economy in Turkey, Turkish citizens have been tired of discouraging news about this area for quite a while and all they have heard of recently is falling Turkish lira, inflation and millions of unemployed people.

However, recent news received from int’l financial institutions such as Fitch, Moody’s, World Bank etc. show that there are some positive developments in the economy, gradually. To provide an example, Fitch improved the rating outlook of Turkey, the European Union has come up with a better estimate of the level of economic contraction.

The effects of the exchange rate fluctuation in 2018 continued in 2019 as well. The citizens had to feel the negative impact in almost every aspect of life. It was not only citizens who experienced these negative developments but foreign countries also monitored them and worsened their forecasts about the performance of the Turkish economy.

Thereafter however, although the rise in cost of living continues, the economy seems to be recovering gradually, thanks to the drop in inflation and interest rates.

To parallel these developments, some prominent global finance organizations monitoring said progress have started updating their growth forecasts for Turkey in the positive direction.

Fitch Ratings for example announced in a statement recently made, they Turkey’s credit rating was “BB-“, and the outlook had been changed from “negative” to “stable”.

It was important for Turkey as Fitch had kept dropping Turkey’s credit note as well as its outlook or kept it at the same level.  In the statement made the progress made was mentioned and also a reference was made to the fact there had been a relief in downward risks.

On the other hand some other organizations such as World Bank, OECD and EU have also made similar improvements in their forecasts for Turkey’s economy in 2019 as well as 2020.

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