Istanbul, construction of buildings, skyscrapers

Standard & Poor’s (S&P) expects Turkish economy to grow 8.6% in 2021

S&P highlights that Turkey’s economy, with one of the fastest growing GDP in the OECD, is growing at faster rate than before the pandemic.

Standard & Poor’s (S&P), one of the world’s leading credit rating agencies, has raised the growth forecast for the Turkish economy to 8.6% in 2021, in its latest report on Turkey published this week.

In this way, S&P raises the GDP growth forecast for Turkey by 0.7% for this year, established in the previous report at 6.1% for 2021; however, Standard & Poor’s does not modify for now in its new study the forecasts of the Turkish economy for 2022 and 2023, in which it estimates that it will grow at 3.3% and 3.1%, respectively.

In its new report, the credit rating agency notes that emerging markets in Europe, the Middle East and Asia have seen rapid growth during the second quarter of the year, thanks to increased consumption and exports following the end of lockdown and many of the restrictions imposed by the pandemic. This is the case of Turkey, whose economy grew by 21.7% in the second quarter, being the 2nd OECD country that grew the most, only surpassed by the United Kingdom.

“As a result, we have revised upwards our 2021 growth estimates for Poland, Russia, South Africa and Turkey,” explains Standard & Poor’s while reasoning the new forecast for the Turkish economy. In fact, S&P emphasises that, although the economies of Poland and Russia reached growth levels similar to the pre-pandemic period in the second quarter, Turkey’s real GDP exceeds its pre-pandemic growth level by 9%, boosted by the resumption of tourism, which has also contributed to increase the arrival of foreign currency.