Turkey’s economy is set to grow by 4.5 percent in 2018 and 3.6 percent in 2019, Fitch Ratings has forecasted, Anadolu Agency reports.
Turkey's growth rate for 2020 will stand at 4.8 percent in 2020, according to Fitch Ratings' Global Economic Outlook report released Wednesday.
The agency predicted Turkey’s inflation rate for 2018 at 11.8 percent, 10 percent for the next year, and 9.0 percent for 2020.
"The weaker lira and higher fuel prices will push up inflation although a recent reduction in the tax on fuel products will reduce the pass-through. Inflation expectations have been on a worsening trend and we now expect inflation to stay in double digits until end-2019," Fitch said.
Fitch also noted that the higher domestic and external financing costs and a weaker currency might hurt growth, which was already likely to slow due to the withdrawal of stimulus after the elections.
Near-term global growth prospects remain robust despite rising trade tensions and political risks, but U.S. inflation risks are rising according to the report.