Moody's raises Turkey's growth prospects for 2018

Moody's raises Turkey's growth prospects for 2018
Posted on: 28 Feb 2018

International credit rating agency Moody's has made a statement regarding the G-20 countries to announce it has increased Turkey's growth forecast figure for 2018 from 3.2 percent to 4 percent. The agency also raised the forecast for next year from 3.3 percent to 3.5 percent.

In the statement it was explained that Turkey had registered a strong growth of 6.7 percent to exceed its potential last year and a deceleration in growth was expected for the coming period. The agency also commented that they had raised concerned forecast for 2018 and 2019 because they believed the government would continue to take fiscal measures to keep economic growth high ahead of the presidential election in November of 2019.

According to Moody's statement, growth forecast for the G-20 countries to include Turkey was raised from 3.2 percent to 3.4 percent for the end of this year and from 3.1 percent to 3.2 percent for 2019.

On the other hand the economic growth forecast for the USA for this year was revised to 2.7 percent from 2.3 percent due to fiscal expansion and from 2.1 to 2.3 percent for 2019.

Opinion leaders in the country  who have made comments about the statement shared by Moody’s mostly agree to the evaluation as to Turkey is due to go through an election process in which the government will take all necessary steps to enhance its position in the eyes of the electorate. The more so considering the elections to come could be a milestone in Turkey’s history in terms of political systems and the current administration is very much determined to establish the new presidential system depending on the results of the election. It goes without saying the opposition is also very much focused and concentrated to make sure Turkey does not have to experience a very major change in administration type which the opposition actually calls a change in regime.