International credit rating agency Moody’s raised its growth forecast for the Turkish economy this year from 3.5% to 4.5%.
Moody’s has released the August issue of its Global Macro Outlook 2022-23 report.
The report noted that global growth has slowed as tighter financial conditions penetrate the economy.
Pointing out that global economic growth continued to weaken with the tightening of financial conditions after central banks’ moves to reduce inflation, the report stated that although the outlook is negative, high-frequency data point to a new stability after the turbulent first half of 2022.
In the report, it was stated that global growth forecasts have been revised down significantly since May, and it was noted that these revisions reflect the significant deterioration in the outlook of many major economies since the beginning of the year.
2.1% growth expected in G20 economies
Reminding that the G20 economies grew by 5.9% last year, the report stated that they are expected to grow by 2.5% this year and 2.1% next year.
Moody’s predicted in May that the G20 economies would grow by 3.1% in 2022 and 2.9% in 2023.
In the report, it was stated that the developed economies of the G20 are expected to grow by 2.1% this year and 1.1% in 2023, while developing economies are expected to grow by 3.3% this year and 3.8% next year.
Moody’s previously noted that developed economies will grow by 2.6% this year and 2.1% next year, while emerging economies are expected to grow by 3.8% this year and 4.2% next year.
Turkiye’s growth expectation has been raised
In the report, it was stated that the growth forecasts of the US, Japan, Germany, Canada, China and India economies for this year were revised downwards, while the growth expectations of Turkiye, Italy, Brazil and South Africa were raised.
In the report of Moody’s, it was reported that the Turkish economy is expected to grow by 4.5% this year and 2% next year.
In the estimates made by the credit rating agency in May, it was predicted that the Turkish economy would grow by 3.5% this year and 4% next year.
Pointing out that global trade and prices are adapting to normal after the epidemic, it was stated that global monetary and financial conditions will continue to be restrictive throughout 2023.
The report emphasized that the economy faces ongoing risks.
Source: Trthaber / Translated by Irem Yildiz