International credit rating agency Fitch Ratings increased its growth forecast for the Turkish economy in its latest report. According to the information in the Global Economic Outlook Report, Turkey’s growth expectation was increased from 2.8 percent to 3.5 percent this year. Additionally, the report stated that the growth forecast of the world economy for 2024 was increased from 2.4 percent to 2.6 percent.
Performance of Turkish Economy
The Fitch Ratings report emphasized that the Turkish economy grew above expectations in the first quarter of 2021, thanks to the recovery in exports, the decline in imports and strong domestic demand. With the influence of these positive developments, it was noteworthy that Turkey’s growth expectation was revised and raised. It was predicted that the country’s economy would enter a stable growth process in 2025 and 2026.
Inflation and Monetary Policy
The report stated that the tightening monetary policy will contribute to reducing inflation and that year-end inflation expectations are predicted to be 43 percent, 23 percent and 18 percent for certain periods. It was also stated that tighter monetary policy and tightening of fiscal policy would help control inflation.
