Fitch Ratings

Turkish economy will grow 0.8% in 2020, according to Fitch

The international credit agency predicts that the world economy will suffer a strong recession in 2020 due to the coronavirus pandemic, with an estimated fall in GDP of 4.2% in the EU.

A report published this Thursday by the international credit agency Fitch Ratings predicts that the world economy will suffer a strong recession this year due to the crisis caused by the coronavirus pandemic, with a drop of 1.9% globally, which will be up to 4.2% in the EU. In the case of Turkey, positive GDP growth will be maintained, although less than expected.

The report estimates that the Turkish economy will grow by 0.8% in 2020, a figure considerably lower than the agency’s previous estimate, which had calculated that the Eurasian country’s GDP would grow this year 3.9%. Looking ahead to 2021, however, Fitch increases the economic growth forecast for Turkey from 4 to 4.5%.

In 2019 the Turkish economy grew by almost 1%, with a growth of 6% in the last quarter of the year. Regarding inflation forecasts, Fitch predicts that prices in Turkey will increase 8.5% in 2020, a figure much lower than the previous report where the inflation was expected to reach 10.5% this year, maintaining a forecast of 10% by 2021.