Moody's Revised Its Growth Forecast for Turkey

Moody's revised its 2020 growth forecast for the Turkish economy from a 5 percent contraction to 1.1 percent growth.

International credit rating agency Moody's revised its growth forecast for Turkey. Moody's updated the growth expectation of the Turkish economy in 2020 from 5 percent contraction to 1.1 percent growth, while the 2021 growth forecast was 4 percent. In its latest report, Moody's predicted that Turkey will grow 3.5 percent in 2021. The organization expects Turkey to grow by 5 percent in 2022. Stating that the recovery in the Turkish economy in the second half of 2020 was effective in the forecast, Moody's predicted that the inflation forecast for the end of 2021 would be 11.4 percent. Noting that the economic recovery across the world will continue unevenly in 2021, Moody's emphasized that countries that cannot supply vaccines due to the lack of cooperation may have difficulty in getting rid of the effects of the coronavirus epidemic. Moody’s stated that most of the G-20 countries will not return to the economic size in 2019 before 2022, while underlining that the G-20 countries can achieve a total growth of 5.3 percent in 2021. Stating that the USA will take the first place in the recovery of the global service sector, the institution stated that it will be relatively longer for European economies to start operating at full capacity.