Fitch Ratings has raised its forecast for economic growth rates in Turkey this year from 6.3 to 7.9 percent.
In a statement issued by the agency, the agency confirmed Turkey’s long-term foreign-currency issuer rating at “BB-” with a “stable” outlook.
The statement noted that policy uncertainty remains high in Turkey, expecting inflation to drop to 16.9 percent at the end of 2021 due to the positive impact and slowing domestic demand.
The statement pointed out that the average annual inflation is expected to reach 14.6 percent for the next year, and 11.8 percent for 2023, according to Anadolu Agency.
He explained that this year’s economic growth forecast for Turkey rose from 6.3 to 7.9 percent due to the strong performance, especially in the first quarter of the year, and the continued resistance in economic activity.
He pointed out that the slowdown in domestic demand in the second half of this year will be balanced by strong exports and recovery in the tourism sector, expecting the country’s economy to grow by 3.5 percent in 2022.
According to the statement, Turkey’s current account deficit narrowed, and its decline was recorded to 3 percent of GDP in 2021 with the improvement of tourism revenues in the second half of this year.