Moody’s raises its growth forecast for Turkey

International credit rating agency Moody’s raised its growth forecast for the Turkish economy this year from 2 percent to 2.3 percent, and its growth forecast for 2024 from 3 percent to 4 percent.

Moody’s published its “Global Macro Outlook” report for February 2023.

Global growth is expected to continue to slow in 2023, with the impact of tight monetary policy on economic activity and employment in most major economies, according to the report.

G20 global economic growth is projected to slow from 2.7% in 2022 to 2% this year and rise to 2.4% in 2024.

In the report, it was noted that inflation in developed economies is expected to remain above central banks’ targets for most of 2023 and 2024, while inflation prospects differ in developing countries.

THE LONG TIME EXPECTED OF INTEREST WILL BE LIMITED

Noting that central banks will keep interest rates tight for longer than markets expect, the report emphasized that despite clear perceptions that the end of monetary policy tightening is near, it is not known for how long. time and for how long the restrictive interest rates will be maintained. rates will continue.

The report indicated that growth forecasts for 2023 for the US, Germany, France, Italy, Canada, China, India, Mexico, Russia, Turkey and Saudi Arabia were raised, while growth expectations for Argentina, South Africa and South Africa Korea decreased.

For next year, the growth forecasts for the economies of China, Turkey and Saudi Arabia were revised upwards, while those of France, Italy and South Africa were reduced.

TURKEY ESTIMATES RISE

In the report, it was reported that Turkey’s GDP growth projections for 2023 and 2024 were revised from 2% and 3% to 2.3% and 4%, respectively, taking into account the effects of reconstruction activities in the regions devastated by the Kahramanmaraş. -centered earthquake.

This year’s growth forecast for the US was raised to 0.9 percent from 0.4 percent, and for China to 5 percent from 4 percent.