International credit rating agency Moody’s raised the growth forecast of the Turkish economy for this year from 2 percent to 2.3 percent and the growth forecast for 2024 from 3 percent to 4 percent.
Moody’s published the “Global Macro Outlook” February 2023 report.
In the report, it was reported that global growth is expected to continue to slow down in 2023 with the impact of tight monetary policy on economic activity and employment in most major economies.
It was noted that G20 global economic growth is expected to fall from 2.7 per cent in 2022 to 2 per cent this year and rise to 2.4 per cent in 2024.
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In the report, it was stated that inflation in developed economies is expected to remain above the central banks’ targets for most of 2023 and 2024, while the inflation outlook in developing countries varies.
Pointing out that central banks will keep interest rates restrictive for longer than the markets expect, the report emphasised that despite clear perceptions that the end of monetary policy tightening is approaching, it is not known how much and for how long restrictive interest rates will continue.
In the report, it was stated that the 2023 growth forecasts for the USA, Germany, France, Italy, Canada, China, India, Mexico, Russia, Russia, Turkey and Saudi Arabia were raised, while growth expectations for Argentina, South Africa and South Korea were lowered.
For next year, growth forecasts for China, Turkey and Saudi Arabia were revised upwards, while forecasts for France, Italy and South Africa were lowered.
In the report, the GDP growth projections for Turkey for 2023 and 2024 were revised from 2 per cent and 3 per cent to 2.3 per cent and 4 per cent, respectively, taking into account the effects of reconstruction activities in the regions destroyed by the Kahramanmaraş-based earthquake.
The growth forecast for the USA for this year was raised from 0.4 per cent to 0.9 per cent and for China from 4 per cent to 5 per cent.
