In a statement to Turkish news agency Anadolu Agency, Douglas Winslow, director of international credit ratings agency Fitch Ratings, said regarding the economic situation in Turkey, "In the first quarter of this year, before the coronavirus shock, economic growth had accelerated to above six percent. We now anticipate a very sharp contraction in the second quarter, flatter growth in the third quarter, and then recovery in the fourth quarter, as activities begin to normalize after the partial lockdown.” He also said that Turkey's gross domestic product (GDP) will expand by 4.5 percent in 2021, which is a sustainable growth rate for Fitch Ratings, after struggling this year due to the coronavirus pandemic.
According to the global economic outlook update report released by Fitch Ratings last week, Fitch anticipates a 1.9 percent contraction in the global economy for this year.
Mr. Winslow said that a 4.2 percent contraction is expected in the euro area due to the coronavirus outbreak, stating that Turkey’s exports may be affected by the recession in Europe.
According to Winslow, it is projected that the inflation rate in Turkey will reach 8.5 percent by the end of this year, while the Central Bank of Turkey (TCMB) has signaled that it is ready to decrease interest rates.