Fitch affirms Turkey rating at BB; outlook stable

WASHINGTON-Anadolu Agency

Fitch rating agency affirmed Turkey's credit rating at "BB" with a stable outlook on Feb. 21.

“Economic growth is recovering strongly, inflation has fallen from 20 percent at the beginning of last year, the current account has improved and external risks, although still high, have eased, supported by the real effective exchange rate adjustment and private sector deleveraging,” it said in a statement.

The agency forecasted 4 percent GDP growth in 2021 with stronger investment, some moderation in private consumption growth and a smaller drag from net exports.

“We continue to estimate Turkey's trend rate of growth at 4.3 percent,” it added.

Fitch forecasted the current account returns to deficit, of 0.9 percent of GDP in 2020 and 1.8 percent in 2021.

It added that inflation will be 10.5 percent at end-2020, helped by tax adjustments and lower energy prices, and 10.0 percent at end-2021.