Raises Turkey's growth forecast to 7.9%

With a "stable" outlook, Fitch raises Turkey's economic growth forecast to 7.9%

Fitch Ratings said that the economic growth forecast for this year for Turkey rose from 6.3% to 7.9% due to strong performance especially in the first quarter of the year, and continued resistance in economic activity.

Fitch Ratings has raised its forecast for economic growth rates in Turkey this year from 6.3% to 7.9%.

In a statement, the agency confirmed Turkey's long-term foreign-currency issuer rating of "BB-" with a "stable" outlook.

The statement indicated that policy uncertainty remains high in Turkey, expecting inflation to drop to 16.9% 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% for the next year, and 11.8% for 2023.

He explained that Turkey's economic growth forecast for this year rose from 6.3% to 7.9% 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% in 2022.

According to the statement, Turkey's current account deficit narrowed, and its decline was recorded to 3% of GDP in 2021, with the improvement of tourism revenues in the second half of this year.