Fitch gives hope to Turkey

ISTANBUL

Turkey’s credit note might be upgraded from BB to BBB- if the country manages to reduce its current account deficit, lower inflation to the targeted level and accelerate growth, the international rating agency Fitch announced in a report. 

Fitch said they are not expecting an official recession in the country and that they foresee Turkish growth to be 2.8 percent in 2012 and 4.5 percent in 2013.

The Turkish economy is making solid progress in returning to a sustainable growth rate, while narrowing the current account deficit and reducing inflation, Fitch said. However, its large external financing requirement still leaves it vulnerable to adverse shocks to the global financial environment.

“We think that if Turkey can achieve these three (although it is pretty hard to improve the structural current account deficit while growth is accelerating), it is pretty clear that every rating agency will upgrade Turkey to investment grade,” said BGC Partners economist Özgür Altuğ in a written note released after the Fitch report.