Moody's raised growth forecasts for Turkish economy

Moody's published the August issue of the Global Macro Outlook 2023-24 report. In the report, it was reported that the Turkish economy is expected to grow by 4.2 percent this year and 3 percent next year.

In its forecasts published in May, Moody's had predicted that the Turkish economy would grow by 2.6 percent this year and 2 percent next year.

In the report, it was stated that in the first half of 2023, economic activity exceeded expectations in many countries, including the United States, the United Kingdom, Canada, France, Brazil, Mexico, India, and Türkiye.

'Tight financial conditions to economic growth'

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

Reminding that G20 economies grew by 2.7 percent last year, the report stated that growth in these economies is expected to slow down to 2.5 percent this year and 2.1 percent next year.

In its previous forecasts, Moody's had predicted that G20 economies would grow by 2.1 percent this year and 2.2 percent next year.

In the report, which pointed out that the Chinese economy is facing significant growth challenges, the growth forecast for the country's economy for this year was maintained at 5 percent, while it was reduced from 4.5 percent to 4 percent for 2024.

In the US, the report stated that the risk of recession has diminished, but it was stated that production below the trend is required for inflation to fall sustainably to the US Federal Reserve's (Fed) target.

In addition, it stated that the growth forecast for the US economy for this year was raised from 1.1 percent to 1.9 percent and from 0.9 percent to 1 percent for next year.

The report stated that inflation fell as expected and will continue to fall next year, but risks remain and that major central banks will maintain their restrictive policy stance until 2024.

Source: Anadolu Agency