Turkish markets can breathe easy: international credit ratings agency Fitch has affirmed Turkey’s investment-grade ratings.
After an agonising wait, Fitch confirmed Turkey’s credit rating on Friday as ‘BBB’, with a stable outlook.
Critics had suggested the outlook would be downgraded from stable to negative, but the government criticised the agency for “not appreciating Turkey’s success.”
A statement from Fitch said the economy had proved stable: “Turkey’s upgrade to investment grade in November 2012 owed much to a demonstrable track record of fiscal consolidation and a reasonably healthy banking system. These rating attributes largely remain intact.”
”The economy continues to show encouraging signs of rebalancing, notably a moderation in the current-account deficit (CAD) and credit growth with no ‘sudden stop’ of capital inflows.”
The minister for economy Nihat Zeybekci said the rating was already “Turkey’s reality,” and stated that the rating should be higher. “Positive or negative comments made about us hold a meaning in international markets, but we will look to our own way.” The minister said that the government would steer the country towards more development, investment and exports. “Of course we will continue on our path by raising the production and goods supply to fight against inflation,” he added. “We always think our Turkey is not at a point that it deserves, hopefully it will be better.”
The booming Turkish economy more than tripled its GDP between 2002 and 2013, reaching USD 820 billion last year. The economy is tipped to become the fastest growing among OECD countries, with an average annual GDP growth rate of 5.2 per cent. Turkey’s economy is already the 16th largest in the world and President Erdogan is predicted it will join the top 10 by 2020, bolstered by a healthy export sector that has increased by 245 per cent in a decade.
After an agonising wait, Fitch confirmed Turkey’s credit rating on Friday as ‘BBB’, with a stable outlook.
Critics had suggested the outlook would be downgraded from stable to negative, but the government criticised the agency for “not appreciating Turkey’s success.”
A statement from Fitch said the economy had proved stable: “Turkey’s upgrade to investment grade in November 2012 owed much to a demonstrable track record of fiscal consolidation and a reasonably healthy banking system. These rating attributes largely remain intact.”
”The economy continues to show encouraging signs of rebalancing, notably a moderation in the current-account deficit (CAD) and credit growth with no ‘sudden stop’ of capital inflows.”
The minister for economy Nihat Zeybekci said the rating was already “Turkey’s reality,” and stated that the rating should be higher. “Positive or negative comments made about us hold a meaning in international markets, but we will look to our own way.” The minister said that the government would steer the country towards more development, investment and exports. “Of course we will continue on our path by raising the production and goods supply to fight against inflation,” he added. “We always think our Turkey is not at a point that it deserves, hopefully it will be better.”