A number of influential international institutions have revised their forecasts for the growth of the Turkish economy in 2021, after t.

International institutions adjust their expectations

Date:

Thursday, January 12, 2023

A number of influential international institutions have revised their forecasts for the growth of the Turkish economy in 2021, after t.

International institutions adjust their expectations "positively" for the growth of the Turkish economy

A number of influential international institutions have revised their expectations for the growth of the Turkish economy in 2021, after achieving a record growth of 7.4 percent during the third quarter of 2021, according to Anadolu Agency.

And the Turkish Statistical Office revealed that the country's gross domestic product (GDP) grew by 21.7 percent on an annual basis, during the second quarter of 2021, despite the negative effects of the Corona pandemic.

The Turkish economy grew by 7.2 percent in the first quarter of this year, continuing to rise in the second quarter to the highest announced growth rate since 1999.

Thus, Turkey ranked second, after Britain, among the most developed countries of the Organization for Economic Cooperation and Development during the second quarter of 2021.

Leading international institutions in economics and finance have begun adjusting their expectations for the Turkish economy, whose performance has accelerated with the ongoing global economic recovery and progress in vaccination operations against Corona.

In this article, we will learn about the most important agencies and organizations that expected the positive growth of the Turkish economy.

Moody's Agency raises its expectations for the growth of Turkey's economy.

The first change came from the international credit rating agency "Moody's", which revised its forecast for the growth of the economy in Turkey from 9.2% to 11% for the current year.

In a statement issued by Moody's, Turkey's long-term credit rating in both local and foreign currency was confirmed.

In the statement, Turkey's credit rating was referred to as "B2", while the outlook was maintained as "negative".

In a Moody's statement, it was stated that the main external vulnerability risks for Turkey have decreased due to the decrease in the current account deficit, which supports the gradual restructuring of foreign exchange reserves on a gross and net basis, regardless of the current pressure on the Turkish lira.

The statement stated that the private sector in Turkey has shown relative flexibility in facing currency fluctuations, and that Turkey's public finances are expected to remain relatively strong.

He stated in the statement that exports, rather than domestic demand, are likely to contribute more strongly to growth in 2022 by taking advantage of the depreciation of the Turkish lira.

The statement indicated that Turkey has a large and diversified economy, and said that the country's economy is expected to grow by 11 percent this year and by 4 percent in 2022.

"Fitch" raises its forecast for the growth of Turkey's economy to 10.5 percent.

The international credit rating agency "Fitch" raised its forecast for the growth of Turkey's economy this year from 9.2% to 10.5% .

This came according to a statement issued, Thursday, by the IAEA, during which it reviewed assessments regarding the Turkish economy.

The statement stated that in the year 2020, when the outbreak of the new Corona virus (Covid-19) began in Turkey, and the country was affected as a result, the gross domestic product increased by 1.8%.

He added, "The country's economy is expected to grow by 10.5% in 2021," instead of the 9.2% that the agency itself had announced last September.

The agency also raised its forecast for the growth of the Turkish economy during the next year 2022 from 3.5% to 3.6%.

The agency maintained Turkey's credit rating at "BB-", and changed its outlook for the country from "stable" to "negative".

The statement indicated that Turkey's economic growth is strong compared to its peers, but the country's per capita income has been declining since 2013 in dollar terms.

Standard & Poor's raises its forecast for the growth of the Turkish economy

The "Standard & Poor's" credit rating agency raised its forecasts for the growth of the Turkish economy for the years 2021 and 2022.

This came in the Emerging Markets Report for Europe, the Middle East and Africa, which was published by the agency on Wednesday.

The report raised its expectations for the growth of the Turkish economy during the current year by 1.2 points to 9.8 percent , while its expectations for growth in 2022 increased by 0.4 points to 3.7 percent.

The agency raised Russia's economic growth forecast for this year by 0.2 points to 4.2 percent, and by 0.1 points to 2.7 percent for 2022.

The report stated that high inflation in emerging markets and the uncertainty resulting from the Corona pandemic may carry risks in slowing economic growth.

The report pointed out that as of the third quarter of this year, all emerging markets in Europe were able to record economic growth while emerging from the effects of the pandemic.

Last September, Standard & Poor's expected the Turkish economy to grow by 8.6 percent for 2021.

OECD raises its forecast for the growth of the Turkish economy

The Organization for Economic Cooperation and Development (OECD) announced, on Wednesday, that it raised its forecast for Turkish economic growth to 9 percent by the end of 2021.

The organization added, in a report on global economic data, that it had raised its expectations for the growth of the Turkish economy, after it had expected it to grow by 8.4 percent by the end of this year.

The international organization also revised its forecast for the growth of the Turkish economy during the next year, raising it from 3.1 to 3.3 percent, while it expected its growth to be 3.9 percent during the year 2023.

Last September, the "Economic Cooperation and Development" projected that Turkey's economy would grow by 8.4 percent by the end of this year. It will amend it in its report issued today to raise it to 9 percent.

International institutions adjust their expectations

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