International credit rating agency Standard Poor’s reported that the growth forecast of the Turkish economy for this year has been raised to 5.2%, while its growth forecast for the next year has been raised to 2.8%.
International credit rating agency Standard & Poor’s (S&P) raised its growth forecasts for Turkiye.
In the report titled “Global Economic Outlook, EMEA (Europe, Middle East and Africa) and Emerging Markets; Trying to Balance Inflation, Interest Rates and Growth” published by the credit rating agency, Turkiye’s economic growth forecasts for this year and next year have been raised.
The report cited the strong performance of the tourism sector, which is expected to outperform expectations in the second quarter of this year and is expected to last until the winter months, as the reason for revising the Turkish economy’s growth forecast for this year by 1.7 points to 5.2%.
In the S&P report, it was noted that the decision to revise the growth expectation of the Turkish economy for this year upwards reflects the expectations that expansionary macroeconomic policy steps will continue in the future.
In the report, it was stated that Turkiye’s economic growth expectation for the next year was increased by 1.1 percentage points to 2.8%, with the expectation of possible additional policy support that the government could implement before the parliamentary and presidential elections in 2023.
In the report, it was stated that while the Eurozone economy is expected to shrink sharply, a nearly non-existent growth of 0.3% can be predicted in the region, even in the basic economic scenario of the credit rating agency in the future.
In the report of S&P, it was stated that after the inflation, which reached 80% in August this year, remained at very high levels for a while due to expansionary policies, energy prices are expected to become more moderate and gradually decrease to 40% in 2023 due to the base effect.
In the report of the credit rating agency it was stated that “Economic activity has slowed markedly in some key emerging EMEA economies. We expect worsening geopolitical and financial conditions to weigh on growth for the rest of the year and into early 2023, particularly in emerging Europe.”
In the report, which gives an example of Turkiye’s strong tourism performance in emerging markets, it was stated that “There are still very favorable trading conditions for energy exporters. There are some bright spots in the overall challenging regional economic outlook, including Turkiye’s booming tourism season that will extend into winter.”
Source: NTV / Translated by Irem Yildiz