JP Morgan revises up Turkey's 2021 growth forecast to 8.4 pct

ANKARA-Anadolu Agency

U.S.-based multinational banking and financial services company JP Morgan on Sept. 1 revised its estimate for Turkey's economic growth for 2021 from 6.8 percent to 8.4 percent.

According to a report published by the firm, the Turkish economy continued to grow "at full speed thanks to robust domestic demand and surging export demand in the second quarter."

The country's economy expanded 21.7 percent year-on-year in the second quarter of 2021, in line with expectations, the Turkish Statistical Institute (TÜİK) announced on Sept. 1.

Following the rapid recovery since the start of the second half of last year, the JP Morgan report said, it is logical to see some moderation in growth in the upcoming period.

It also warned high unemployment, as well as coronavirus-driven uncertainties, pose downside risks to growth.

However, it noted that domestic sentiment is resilient, loan growth is still high and export figures are quite strong, saying high-frequency data back up the case for continued growth strength.

The firm did not change its 2022 forecast, keeping it at 3.4 percent.

On Tuesday, international credit rating agency Moody's also upgraded Turkey's economic growth forecast for 2021 from 5 percent to 6 percent.

It noted that a recovery in the tourism sector supported the growth in the Turkish economy, thanks to the ongoing global economic recovery and progress in the COVID-19 vaccination.