2/23/2021

Fitch Upgrades Turkey’s Outlook

​Releasing a statement on February 19, US-based credit rating agency Fitch Ratings revised up Turkey’s outlook from “negative” to “stable”. 

Keeping the country’s credit rating at ‘BB-‘, the statement finds that “Turkey's return to a more consistent and orthodox policy combined with a new economic team has helped eliminate near-term external financing risks derived from last year's falling international reserves and a high current account deficit.” 

The new team, paving the way for transparency and predictability, simplified monetary policies of the Central Bank of the Republic of Turkey Fitch Ratings added. 

According to the agency, while Turkey’s current account deficit stood at 5.3 percent in 2020, it is projected to drop to 2.9 percent in 2021 and 2.1 percent of GDP in 2022. 

Fitch also revised upwards its GDP forecasts for Turkey to 1.4 percent from -3.9 percent in 2020, to 5.6 percent from 5.4 percent in 2021 and to 4.7 percent from 4.6 percent in 2022.

Lastly, it was stated that Turkey’s outlook could be revised up even more in the future. 
Fitch Ratings Chart
Fitch; Turkey; outlook; current account deficit; credit