Statement by finance company says Istanbul stock market will be stronger in 2021

According to a finance company operating in the sector, Istanbul stock market is expected to be stronger in 2021, while domestic demand and exports are expected to form the basis of growth in the economy. The company has prepared a report for investors under the title “2021 Turkey Strategy Report”. The report emphasized the expectation that 2021 will be a stronger year for Borsa Istanbul, while the view that domestic demand and net exports will form the basis of economic growth in 2021.

The report said the first half of 2020 was a bumpy year for stock markets and along with the expectations of recovery in the economies there were significant recoveries in stock markets.

The report also mentioned that in a period when Global liquidity was directed towards high-yielding assets, inflows to Turkey (which implements a strict fiscal policy) could accelerate. The report also noted that foreign savings would form the basis of economic growth in 2021.

The report said Turkey was expected to grow by 4 percent in 2021 adding, “compared to 2020, we think that the contribution of domestic consumption to growth will be more limited. However, we anticipate that the contribution of the domestic market to growth will continue. On the other hand, with the recovery in our main export countries, we expect the contribution of net exports to Gross Domestic Product (GDP) growth to be higher. The recovery in industrial production will also help revive investment activity.”

The report added, “Despite the refinancing of $ 181 billion of debt and the financing of an expected current account deficit of $ 24 billion in 2021, we believe that the CBRT’s simplified monetary policy will continue to support the TL. In this context, we think that TL will strengthen in real terms.”