Posted on 10 December 2009
Today further news emerged that the Turkish economy is firmly in recovery. The economy contracted 3.3% in the third quarter, which is a lot slower than in previous quarters. The annualised contraction for this year is now expected to be 6%.
Also positive: the government has forecast 3.5% growth next year, which analysts say is entirely feasible because of the low base rate. And the government also forecast that inflation would fall below the 6.5% target next year, despite a rise in the coming months and into the first half of the year.
An astonishing 6.5% growth in output was recorded on the month in November it has also been revealed. Analysts think the growth will bring an end to the low interest rates.
With all the news turning positive in the case of Turkey, analysts, and more importantly investors are becoming incredibly bullish about the market’s prospects.
“Our assumption is still that Turkey is a fairly dynamic economy,” said Royal Bank of Scotland economist Timothy Ash.
“Looking ahead, we expect the economic recovery to continue, though its pace is likely to remain moderate,” Citi said in a note, adding that it estimated Turkish GDP would grow around 4.0 percent in 2010.
This just days after two of the world’s leading financial authorities – Fitch and JP Morgan Chase & Co — upgraded their ratings on Turkey, based on their projections for above average growth next year. It also comes just weeks after a major research study named Turkey as having one of the fastest growing construction industries in the next decade.