S&P announced its assessment of the Turkish economy. In the statement made by the credit rating agency, it was reported that Turkey’s long-term credit rating was increased from “B” to “B+” and the credit rating outlook was maintained as “positive”.
A DECLINE IN INFLATION IS EXPECTED WITHIN 2 YEARS
In the statement, it was stated that it is thought that the coordination between monetary, fiscal and income policies will improve with the effect of external balancing following the local elections in Turkey, and that portfolio inflows will increase, current account deficits will narrow, and a decrease in inflation and dollarization is predicted in the next 2 years.
In the statement, it was stated that Turkey’s credit rating could be increased if policy makers manage to reduce inflation and restore confidence in the lira in an environment where the current account deficit narrows and dollarization reverses.
ANNUAL GROWTH EXPECTATION OF TURKISH ECONOMY IS 3 PERCENT
In the statement, which also included forecasts for the country’s economy, it was stated that the Turkish economy is expected to grow by 3 percent this year and next year.
In the statement, it was reported that consumer price increases in the country are estimated to be 55.8 percent this year and 27.3 percent next year.
MOODY’S AND FITCH ALSO INCREASED THE CREDIT RATING
Due to recent policy regulations in Turkey, S&P made an off-calendar assessment in December and changed the country’s credit rating outlook from “stable” to “positive”.
Moody’s, another credit rating agency, also increased Turkey’s credit rating outlook from “stable” to “positive” in January.
Fitch Ratings raised Turkey’s credit rating from “B” to “B+” in March and changed its rating outlook from “stable” to “positive”.
