An international agency has decided announced Turkey’s growth potential has fallen by a whopping 4.3 percent.
Fitch, an internationally-respected ratings agency, has released a report detailing listed revisions of emerging economies’ potential growth rate estimates.
The report included Fitch economists’ prediction of potential growth rates, lowered by negative investment visibility.
Turkey’s potential growth rate lowered by 0.5 percent.
Fitch lowered its Turkey’s potential growth forecast to 4.3 percent, from a previous 4.8 percent. The report further stated the lowered growth rate, also negatively affected by the decline in the ratio of investments to GDP, reflects the sharp correction in the external factors experienced since last year as Turkish Lira lost historical 40 percent value against US Dollar.
This situation would cause significantly lower growth than a previously predicted rate in capital and labour productivity, Fitch analysed.
According to the report, which includes five-year growth forecasts of 10 developing countries, the rating agency estimated 0.5 percentage lower growth figure than the last report.
Fitch’s data shows Brazil’s potential growth rated declined from 1.8 to 1.7. Mexico’s growth forecast lost 0.3 percent and fell to 2.5 percent. South Africa’s growth forecast lowered to 1.7 from 1.9 previously.
India remained as the only county with top potential growth rate among emerging economies as Fitch increased the rate 0.3 percent and estimated 7 percent growth rate for New Delhi. The rating agency reduced Indonesia’s growth rate to 0.3 by reducing 0.2 percent.
The pro-government newspaper, Sabah, said following JP Morgan, another US rating agency Fitch also reduced Turkey’s growth forecast. Sabah claimed rating agencies are now on an overdrive before the Turkish local election to manipulate the economy.