Morgan Stanley Shared Its Predictions For Turkey's Growth

Domestic markets shared positive expectations for Turkey's growth in the first three months of 2021, but Morgan Stanley disagrees.

Morgan Stanley shared its predictions for Turkey's growth. As the domestic markets turn their attention to the first quarter growth data expected to be announced on May 31st, reports on growth expectations continue to be announced. Morgan Stanley, one of the world's largest investment banks, made the latest assessment. Domestic markets shared their positive expectations for the country's growth in the first quarter of 2021, while Morgan Stanley predicted that growth in the first quarter of this year would be 5.3 percent on an annual basis. On a quarterly basis, the institution announced its expectation as 1.25%. Agency analysts stated that the recovery in consumption expenditures and foreign demand will contribute to growth despite the strong performance in imports. Following these assessments, Morgan Stanley predicted that growth would be 4.8 percent for the full year 2021. The institution also shared its expectations regarding the May inflation, which is expected to be announced next week. Accordingly, the institution expects inflation to rise to 17.3 percent in May. In August, it predicted that this year's peak will be seen in inflation with 17.7 percent. In addition, the institution announced that it expects inflation to decline to 14.7 percent by the end of the year.

Domestic Markets Expect 6.7 Percent Growth

In the growth survey prepared by Bloomberg HT Research Unit, the first quarter growth expectation was realized at 6.7 percent. The institution that gave the lowest estimate among the 17 institutions participating in the survey predicted that Turkey will grow by 5 percent in the first quarter, while the institution that gave the highest estimate predicted that the country will grow by 7.2 percent. The expectations of the institutions for the whole of 2021 were recorded as 5.5 percent. Turkish economy grew by 1.8 percent during the coronavirus outbreak, and this growth was recorded as 5.9 percent in the last quarter of 2020.