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Moody’s raised Turkey’s growth forecast

In Moody’s Global Macro Outlook Report, it was reported that the G20 economies, which contracted by 3.2% last year, are expected to grow by 5.8% in 2021, 4.4% in 2022 and 3.2% in 2023. Moody’s increased its 2021 growth forecast for the Turkish economy from 6% to 9.2%.

International credit rating agency Moody’s forecasts G20 economies to grow by 5.8% and emerging economies in the G20 to 7.3% in 2021. Moody’s has published the November 2021 issue of its Global Macro Outlook 2022-23 report.

ECONOMY WILL ENTER A STABLE GROWTH PHASE

The weaker-than-expected economic growth momentum and rising inflation somewhat dampened optimism about the global economic recovery, the report said. In the report, which is expected to decrease the uncertainties regarding the Covid-19 outbreak, supply chain and workforce bottleneck next year, it is predicted that these decreases will allow the global economy to enter a stable growth phase until 2023.

GROWTH EXPECTATIONS HIGH FOR TURKEY

In the report, it was stated that the G20 economies, which contracted by 3.2% last year, are expected to grow by 5.8% in 2021, 4.4% in 2022 and 3.2% in 2023. In Moody’s report, 2021 growth forecasts for the US, Canada, Germany, Japan, UK and China economies were revised downwards due to weaker-than-expected data since June, while growth expectations for Turkey, South Africa, Russia and Saudi Arabia were raised.

9.2% GROWTH IS EXPECTED FOR TURKEY

In the report, it was noted that the developed economies of the G20 are expected to grow by 4.9% in 2021 and 4.2% in 2022. Pointing out that developing economies are also predicted to grow by 7.3% this year, it was stated in the report that the growth performance of these countries will decrease to 4.8% in 2022.

In the report, it was reported that the Turkish economy is expected to grow by 9.2% in 2021. Moody’s, in its report published in September, predicted that the Turkish economy will grow by 6% in 2021. In the report, which pointed out that the growth expectation of the Turkish economy for 2022 was increased from 3.6% to 4.8%, it was estimated that the country’s economy would grow by 5% in 2023.

INLANATION IS ESTIMATED TO FALL

In the report, it was stated that “monetary and credit expansion and abundant liquidity support continue to support Turkey’s credit-driven economic recovery,” and that the government is expected to continue to prioritize credit-driven growth. It is estimated that the inflation rate in Turkey will decrease to 19% this year and 16,4% next year.

Source: Sabah / Translated by Irem Yildiz

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