Moody’s released new forecasts for Turkey. For this year, the growth forecast for the Turkish economy has been raised from 2.6% to 4.2%, and for the next year, it’s been upgraded from 2% to 3%.

Moody’s, the international credit rating agency, published the August edition of the Global Macro Outlook 2023-24 Report and updated its forecasts for Turkey.

It was reported that the Turkish economy is expected to grow by 4.2% this year and by 3% next year.

In May, Moody’s had predicted that the Turkish economy would grow by 2.6% this year and by 2% next year.

In the first half of 2023, economic activities in many countries including the USA, UK, Canada, France, Brazil, Mexico, India, and Turkey exceeded expectations.

In the report, which also included inflation forecasts, it was noted that the year-end inflation in Turkey is expected to be 51.2% this year and 48.7% next year.

“Tight Financial Conditions Will Continue to Suppress Global Economic Growth”

The report highlighted that tight financial conditions will continue to suppress global economic growth this year and keep growth below the trend in 2024.

The G20 economies, which grew by 2.7% last year, are expected to slow down, growing by 2.5% this year and 2.1% next year, the report recalled.

Moody’s had previously forecasted that G20 economies would grow by 2.1% this year and 2.2% next year.

“China’s Economy Faces Significant Growth Challenges”

The report pointed out that China’s economy is facing significant growth challenges. While the growth forecast for this year remained at 5% for China, the growth estimate for 2024 was lowered from 4.5% to 4%.

In the US, the risk of recession has decreased, but the report mentioned that production below the trend is required for inflation to fall sustainably to the Federal Reserve’s target.

The growth forecast for the US economy for this year was raised from 1.1% to 1.9% and for the next year from 0.9% to 1%.

It was noted in the report that inflation has fallen as expected and will continue to fall next year. The risks persist, and major central banks are expected to maintain their restrictive policy stances until 2024.