Moody’s Expects Contraction, Fitch Recession in Turkey’s Economy in 2019

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International credit rating agency Moody's has stated that the domestic political risks prevalent in Turkey will continue posing risks to the credit outlook of the country. The agency has also estimated that the global credit conditions will also weaken in 2019.

Publishing a statement on its website, Moody's has also attracted attention to "increasing institutional difficulties and policy uncertainties" in Turkey.

Moody's: Economy will contract in 2019

Emphasizing that "geopolitical and domestic political tensions will dominate the risk landscape for global credit conditions and credit quality in 2019", Moody's has warned, "Meanwhile, domestic political risks will continue to weigh on the credit outlooks for Italy, Brazil, Turkey and Argentina."

Sharing its analyses and expectations regarding the economy of Turkey, the agency has estimated that while the economy of the country will continue to grow by 1.5 percent this year, it will contract by 2 percent in 2019.

Fitch: Turkey could go into recession in 2019

Another international credit rating agency Fitch has also shared its estimations growth forecasts about the economy Turkey.

Fitch has downgraded the growth forecasts of Turkey in 2018 and 2019. Accordingly, the real growth forecasts of Turkey, which were respectively announced as 4.1 and 3 percent by the agency, have been downgraded to 3.6 and -1.9 percent in 2018 and 2019.

Referring to the exchange rate crisis, high inflation rates and challenging external financing conditions, Fitch has stated that these factors have shocked Turkey, which could lead it to go into a recession in 2019. (HA/SD)