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Economic forecasts of the Republic of Turkey

Economic forecasts of the Republic of Turkey

Despite the international economic crisis and other challenges, the economy of the Republic of Turkey remains one of the fastest-growing and ranks 17th by nominal GDP, as well as 13th by a gross domestic product that is calculated at purchasing power parity. In this article, we will share the forecasts of specialists regarding the Turkish economy soon. 

Such results are right because Turkey is one of the leaders among agricultural products, vehicles, marine vessels, construction, and household appliance manufacturers. No one will ever forget Turkey’s success in the tourism sector.

According to the Fitch international rating agency, Turkey’s sovereign “BB” rating is confirmed with a stable forecast. It the release, it is also stated that Turkey’s “BB” rating shows its weak foreign financial policy, economic volatility, high inflation, and political risks. However, the factors harmoniously complement the good local economic diversification and a strong GDP indicator. 

Based on the analysis of last year, experts note that the country’s economy is growing, and the inflation rate fell to 20%. External risks have decreased, but not so much as not to define them as low. 

The agency predicts an increase of 0.8 in 2020, to 3.9%. “The labor market’s moderately positive dynamics, a 15% increase in the minimum wage and the restoration of confidence indicators support the growth of domestic demand”, — Fitch writes. According to the agency’s plans, in 2021, GDP will grow by 4%.

The Turkish delegation of the International monetary fund (IMF) shared its forecast. It shows that the Turkish economy will grow by 3% in 2020. 

The report emphasized that monetary policy should be aimed at a steady decline in inflation.

In addition, according to the forecast, the Turkish lira has recovered, and the successful tourist season has significantly improved the current situation. 

According to the Organization for economic cooperation and development (OECD), by the end of the year, the Turkish GDP can grow by 0.3%. The organization predicted a 3% increase in 2020. The company admits that GDP growth in Turkey will reach 3.2% in 2021.  

The report concludes with an emphasis on rebuilding the Turkish economy with government measures to stimulate domestic demand for higher export volumes amid falling local currencies.