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Turkish Economy Receives Revised Outlook from Standard & Poor’s

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Standard & Poor’s (S&P) has affirmed Turkey’s long-term sovereign credit rating at ‘B’, adjusting its outlook from stable to negative.

The agency said in a statement: “Turkey’s high current account deficit, limited usable reserves and high inflation make the exchange rate outlook uncertain.”

According to the agency, Turkey’s GDP will grow by a little more than 2% by the end of the year compared to growth of 5.6% last year. The agency also expects domestic inflation to remain high at 45% (on average) this year.

She indicated that Turkey’s credit rating could be downgraded if pressure on financial stability and the Turkish budget increases, which may be due to another depreciation of the Turkish lira.

At the same time, Standard & Poor’s may upgrade Turkey’s rating if the effectiveness of monetary policy improves and predictability emerges.

Source: News

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