Credit rating agency expects recovery, rebalancing of Turkish economy to continue

Turkey could experience greater stability in 2020, said the credit ratings agency Fitch on Friday.

“Fitch expects the recovery and rebalancing of the economy to continue, with growth strengthening, inflation falling and the current account deficit contained,” the agency said in report on the outlook of emerging European countries.

The report stressed that with no national elections due until 2023, 2020 provides an opportunity for Turkey to implement reforms stated in the government’s New Economy Program, tackling structural credit weaknesses.

“Nonetheless, risks remain multifaceted. Weak monetary policy credibility, economic policy, political, geopolitical and sanctions risks could provoke bouts of asset price volatility, although global interest rate policy should keep external financing conditions supportive,” it added.

It said the weak global economic growth will create a more difficult environment for emerging European countries next year.