Fitch: Turkeys soft landing on track, ratings may be upgraded.

By bne IntelliNews August 24, 2012
Fitch said that the Turkish economy was making solid progress in returning to a sustainable growth rate while narrowing the current account deficit and reducing inflation. Further progress in navigating a path back to sustainable growth, with inflation falling toward its target and the CA deficit narrowing to a more sustainable level could lead Fitch to upgrade Turkeys long-term IDRs to BBB- from BB+, the rating agency added. Fitch forecasts GDP growth of 2.8% in 2012 and 4.5% in 2013 while its CA deficit forecasts are USD 60bn (7.5% of GDP) in 2012 and USD 59bn (6.6% of GDP) in 2013. The rating agency expects Turkey to avoid a formal recession as strong export growth is helping offset a more abrupt slowdown in domestic demand. Fitch forecasts 12-month inflation to decline to 6.4% in December. Despite the good progress towards a soft landing, the CA deficit and external financing needs are large, leaving Turkey vulnerable to sudden stop in international capital inflows, Fitch said.

Related Articles

PKK leader Ocalan calls for ceasefire and withdrawal of militants from Turkey.

The jailed leader of the PKK, Abdullah Ocalan, called for a ceasefire on Thursday, ordering armed PKK militants to withdraw from Turkey. Hundreds of thousands of people gathered in the city of ... more

Syrian government says Turkey responsible for chemical attack.

The Syrian government said the rebel groups foreign supporters, Turkey and Qatar, were responsible for a chemical attack in Aleppo. The countries that back and support the rebels, including ... more

Erdogans comments on Zionism clouds US secretary of states Turkey visit.

US secretary of state John Kerry was in Ankara on Friday for talks with the Turkish leaders, including PM Recep Tayyip Erdogan and President Abdullah Gul, focused on the crisis in Syria, ... more

Notice: Undefined index: subject_id in /var/www/html/application/controllers/IndexController.php on line 335