Fitch revises growth forecast for the Turkish economy

International credit rating agency Fitch Ratings has raised its global economic growth expectations from 2.7 percent to 2.8 percent for this year, and from 2.5 percent to 2.6 percent for next year.

Fitch published the December issue of its Global Economic Outlook report under the title "US Tariff Hikes Loom."

The report stated that upward revisions were made to the world economy's growth forecasts for this year and next, noting that the global economy is expected to grow by 2.8 percent in 2024 and 2.6 percent in 2025.

The report also indicated that the world economy is expected to grow by 2.3 percent in 2026.

In its September forecasts, Fitch had projected that the world economy would grow by 2.7 percent this year and 2.5 percent next year.

The report, which projects that the US economy will grow by 2.7 percent this year, stated that the country's economy is estimated to grow by 2.1 percent next year and 1.7 percent in 2026.

The report noted that there are no signs of the expected gradual slowdown in consumer spending in the US.

The report, which states that the Eurozone economy is expected to grow by 0.8 percent this year, included estimates that the region's economy will grow by 1.2 percent next year and 1.3 percent in 2026.

The report pointed out that while real household incomes in the Eurozone are increasing, the recovery in consumption remains "weak."

It was noted that the savings rate in the region has risen, and that companies are concerned about US protectionism and the loss of dynamism in Germany's export sector, while expectations of fiscal tightening in France are creating pressure.

The report stated that the Chinese economy is expected to grow by 4.8 percent this year, and is estimated to grow by 4.3 percent next year and 4 percent in 2026. It was stated that further fiscal support might be required to prevent growth in the country from falling below 4 percent.

Regarding the forecasts for Turkey, it was stated that the country's economy is expected to grow by 2.9 percent this year, 2.6 percent next year, and 3.5 percent in 2026.

In its September forecasts, Fitch had projected that the Turkish economy would grow by 3.5 percent this year, 2.8 percent in 2025, and 3.7 percent in 2026.

The report indicated that the fact that growth in the third quarter of this year came in below expectations suggests that efforts to cool the economy are beginning to show their effect.

News Source: AA