JP Morgan and Goldman Updated The Growth Expectation for Turkey

JP Morgan and Goldman Sachs have updated the growth expectation for Turkey. Banks raised their growth forecasts. Here are the details..

US investment banks JP Morgan and Goldman Sachs revised their economic growth forecasts for Turkey upwards due to strong domestic and foreign demand. JPMorgan revised its 2021 growth forecast for Turkey and increased it from 6.8 percent to 8.4 percent, while keeping its 2022 growth forecast at 3.4 percent. In the published report, it was stated that there would be "upside" risks on the forecasts, especially if the government preferred to hold early elections. Goldman Sachs also raised its 2021 gross domestic product (GDP) growth forecast for Turkey and revised it from 7.5 percent to 9.5 percent. Goldman Sachs economists, in their assessment after the GDP data, said, "Overall, the Turkish economy was able to grow faster than we thought without any deterioration in external balances, as the recovery in foreign demand was very supportive." The Turkish economy grew by 21.7 percent in the second quarter, in line with the expectations, mainly due to the base effect created by the pandemic. Economists expect growth to approach double digits this year.