Fitch releases inflation forecast for Turkey

Fitch projected that inflation in Turkey will average 58 percent in 2024 and 29 percent in 2025.

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Fitch releases inflation forecast for Turkey

International credit rating agency Fitch stated that Gulf Cooperation Council (GCC) banks with subsidiaries in Turkey should benefit from Turkey's macroeconomic adjustment and its transition to more conventional and consistent economic policies.

According to Fitch, falling inflation will reduce the net monetary losses of these subsidiaries, and a slower depreciation of the Turkish lira will mitigate the negative capital impact resulting from currency translation losses.

INFLATION PROJECTED TO BE 29 PERCENT IN 2025

The net monetary loss of the Turkish subsidiaries of Gulf Cooperation Council banks was 2.6 billion dollars in 2023.

The statement said, "Assuming that Turkish CPI averages will be 58 percent in 2024 and 29 percent in 2025, we expect the net monetary loss to rise to approximately 2.8 billion dollars in 2024, and then fall to approximately 1.4 billion dollars in 2025. If the decline in inflation is at least in line with our expectations and continues after 2025, Gulf Cooperation Council banks will likely stop using hyperinflation reporting from 2027 onwards."

'TIME TO TURN BACK FROM THE BRINK'

Stating that the Israeli government has announced it will increase the distribution of humanitarian aid following the latest incident, Guterres drew attention to the dire situation in Gaza, using the phrase, "The dramatic humanitarian conditions require a major breakthrough and a real change in approach."

Recalling that the UN Security Council called for a ceasefire and the acceleration of humanitarian aid in its resolution on March 25, Guterres said, "All demands must be met. Failure to do so is inexcusable."

News Source: 12punto