Goldman Sachs Announced Growth Forecast For Turkey
Goldman Sachs announced its growth forecast for Turkey. The institution raised its growth prospects for Turkey.
Foreign institutions continue to revise their growth expectations for Turkey upwards. After many institutions, Goldman Sachs also raised its 2021 growth forecast for Turkey.
In the report prepared by Goldman Sachs economists, including Kevin Daly, the growth expectation for 2021 was raised from 4 percent to 6 percent. The institution revised its policy interest expectation for the end of the year downwards. Considering the increase in the Turkish lira, economists reduced their year-end policy rate expectation from 17 percent to 16.50 percent.
It was stated that the tightening in monetary policy and the increase in energy prices could create a stagnation in the forward growth outlook by the end of the year.
In the report prepared by Goldman Sachs economists, it was pointed out that after the coronavirus epidemic, there is room for non-inflationary growth in Central and Eastern Europe along with the Middle East and Africa countries.
HSBC Revised Its Forecast
In its report on the Turkish economy, HSBC revised its expectations, stating that the economy management had changed and the Central Bank of the Republic of Turkey entered a tightening cycle. The institution used the following statements:
“We expect the economy to grow by 2.9 percent quarter-on-quarter in the last quarter of 2020. Our previous forecast was minus 0.7 percent. Therefore, our growth forecast for the whole of 2020 increased from 1 percent to 2 percent.”
The agency increased its growth forecast of Turkey for 2021 from 2.1 percent to 4.2 percent.