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Standard Poor’s affirms Turkey’s credit rating, raises growth expectations

International credit rating agency Standard Poor’s (SP) affirmed Turkey’s foreign currency credit rating as “B+” and local currency credit rating as “BB-“, and changed its credit rating outlook from “stable” to “negative”. SP increased its 2021 growth expectation for the Turkish economy from 8.6% to 9.8%.

In the statement made by S&P, evaluations were made regarding the Turkish economy.

In the statement, it was stated that Turkey’s foreign currency credit rating was confirmed as “B+” and its local currency credit rating as “BB-“, while the country’s credit rating outlook was changed from “stable” to “negative”.

In the statement, it was stated that the outlook may be revised to “stable” if the predictability of public policy and the effectiveness of monetary policy are observed to be sustainable and developed.

Pointing out that Turkey’s current account is in a stronger position than in August 2018, the statement said that confidence in the Turkish banking sector is preserved as households prefer to keep their savings in banks.

In the statement, it was reported that the growth forecast of the Turkish economy for this year was increased from 8.6% to 9.8%.

Pointing out that the country’s economy is expected to grow by 3.7% next year, it was stated in the statement that the Turkish economy is expected to grow by 3.1% in 2023 and 3% in 2024.

Emphasizing that exports of goods are expected to remain strong, it was stated that the faster recovery of tourism could be supportive if the Omicron variant in the new type of coronavirus (Covid-19) epidemic does not lead to new quarantine measures and widespread international travel restrictions.

In the statement of S&P, it was noted that the view that the Turkish economy will grow by around 3% on average in the medium term is preserved.

Source: NTV / Translated by Irem Yildiz

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