Fitch lifts 2017 growth forecast for Turkey to 5.5 pct

ISTANBUL

Fitch Ratings has revised up its 2017 Turkish economic growth forecast from 4.7 percent to 5.5 percent on Oct. 2.

The Turkish economy expanded 5.1 percent year-on-year in the second quarter of the year, official data showed on Sept. 11, showing a strong recovery in investments and exports, helped by the government’s fiscal stimulus measures after growth was hit last year by an attempted coup.

First quarter growth was also revised up to 5.2 percent from an initially reported 5 percent, while 2016 growth was revised up to 3.2 percent from an initial 2.9 percent.

In its Global Economic Outlook (GEO) report, Fitch also said Turkey would likely grow by more than 7 percent in the third quarter.

“Fifteen of the 20 countries covered in our GEO saw better-than-expected GDP outturns in 2Q17 and in several cases—including Canada, Russia, Turkey and Poland—the positive surprises were large at over 0.5 percent [not annualized]. Forecasts for 2017 growth have been upgraded for 13 countries and seven countries have seen an increase in 2018 growth forecasts,” the Fitch said.

Global growth has been upgraded to 3.1 percent in 2017 from 2.9 percent in June, and 2018 growth has been upgraded to 3.2 percent from 3.1 percent by the rating agency.