Fitch raises Turkey's economic growth forecast

International credit rating agency Fitch Ratings has made a positive revision to the Turkish economy in its December Global Economic Outlook Report. In the report, Turkey's growth expectation for 2025 was updated to 3.8 percent, while growth rates of 3.5 percent and 4.2 percent are projected for 2026 and 2027, respectively.

Fitch also revised its global economic growth forecasts. The global growth expectation for 2025 was raised to 2.5 percent, and to 2.4 percent for 2026. These changes are attributed to factors such as increased information technology investments and vitality in stock markets.

In the report, growth forecasts for the US economy were also revised upwards. The US growth forecast for this year was raised to 1.8 percent, while it is expected to grow by 2.1 percent in 2026. For the Eurozone, this year's growth forecast was set at 1.4 percent.

Fitch's report also drew attention to the macroeconomic effects of artificial intelligence. In particular, the impact of information technology investments on Gross Domestic Product (GDP) in the US was highlighted. Furthermore, interest rates in the US and the UK are estimated to approach neutral levels by mid-2026.

The report projects that the US Federal Reserve (Fed) will keep interest rates steady but will implement three cuts by 2026. While the Bank of England is expected to take a similar step, no additional interest rate cuts are expected from the European Central Bank.

News Source: 12punto