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Moody’s upgrades Turkey’s economic growth forecast

25 February 2021 11:06 (UTC +04:00)

The rating agency revises Turkey’s economic growth rate to 4 and 5 percent for 2021 and 2022, respectively, APA reports citing P.A.Turkeynews.

Moody’s has revised Turkey’s economic growth forecast to 1.1 percent for 2020 from a 5 percent contraction and 4 percent for 2021 from 3.5 percent. According to a report published by Moody’s, the country’s rate for 2022 was also revised up from 4 to 5 percent.

The report noted gross domestic product (GDP) is expected to increase in all G20 economies. “But some countries may take longer than others to return to full capacity. Fiscal and monetary policy response will play an important role in this as well as the management of the pandemic.”

G20 countries are expected to grow by 5.3 percent in 2021 and 4.5 percent in 2022, while the rate in the eurozone is estimated to be 3.7 percent this year and 3.9 percent next year. On the other hand, the report pointed out the growth rate in the eurozone contracted around 7.1 percent in 2020.

The eurozone represents member states of the EU that use the single currency — euro. The report also underlined that the US economy is expected to grow by 4.7 percent in 2021 and 5 percent in 2022.

Yesterday, PATurkey reported that Goldman Sachs and BofA have both revised upward their 2021 forecasts for the Turkish economy, following in the footsteps of other international financial institutions.

The International Monetary Fund (IMF), Wall Street bank JP Morgan and British banking giant HSBC had also recently revised up their projections regarding Turkey’s gross domestic product (GDP) growth.