Fitch Ratings announced its assessment of the Turkish economy.
In the statement made by the credit rating agency, it was reported that Türkiye’s long-term credit rating was confirmed as “BB-” and the rating outlook was “stable”.
In the statement, it was stated that Türkiye’s low public debt, large and diversified economy, high per capita income compared to the median of the countries in the “BB” rating group, its history of maintaining access to external financing during periods of stress and its resilient banking sector are among the factors supporting its credit rating.
It was stated in the statement that Türkiye’s potential growth rate was evaluated to be close to 4 percent, and that the growth rate was expected to be 2.8 percent this year and 4.4 percent next year.
In the statement, it was stated that inflation in Türkiye is expected to decrease from 32 percent in June to 29.5 percent by the end of 2026.
In the statement, it was stated that the Central Bank of the Republic of Turkey (CBRT)’s increase in the funding cost by 300 basis points and its latest steps to tighten credit limits supported the partial recovery in international reserves following the foreign exchange interventions carried out to stabilize the lira in the first period of the US-Iran conflict, and it was noted that gross foreign exchange reserves are expected to reach 167 billion dollars by the end of 2026.
In the statement, it was pointed out that the significant strengthening of the country’s external buffers, especially with the sustainable decrease in external financing needs, and the increased confidence that the tight policy stance that supports the decline in inflation will be maintained, may lead to an increase in the credit rating.
