HSBC Revised Growth Forecast for Turkey

HSBC revised its growth forecast for Turkey. The bank raised its growth forecast for 2020 and 2021.

In its report on the Turkish economy, HSBC noted that its management changed and the Central Bank of the Republic of Turkey entered a tightening cycle. HSBC announced that it revised its growth forecast after December industrial production data, and said, "We expect the economy to grow 2.9 percent on a quarterly basis in the last quarter of 2020. rose to. " The bank also increased its growth forecast for 2021 from 2.1 percent to 4.2 percent. It is stated that this revision is more of a technical development. In addition, despite the upward revisions, it was estimated that there will be a sharp slowdown in economic activity in the second half of the year. In the report, which stated that the imbalances in the economy have not recovered yet, it was emphasized that the core inflation remained high and could accelerate in the first quarter. It was also noted that food inflation is still high, and energy inflation is on the rise. In the report in question, it was stated that the contraction in the current account deficit will continue and the contraction process in the deficit will slow down as the current deficit/GDP ratio decreases to 3 percent.     Source: Bloomberg HT