The international credit rating agency Fitch Ratings upgraded Türkiye's Long-Term Foreign-Currency Issuer Default Rating (IDR) from "B" to "B+", revising its outlook from stable to positive. This adjustment signifies confidence in the resilience and effectiveness of policies adopted since the pivot in June 2023, including a more aggressive-than-expected front-loading monetary policy tightening, which helped alleviate macroeconomic and external vulnerabilities.
“The Positive Outlook reflects Fitch's expectation that Türkiye's overall macroeconomic policy stance should be consistent with a significant decline in inflation, as well as a continued reduction in external vulnerabilities in terms of lower current account deficits and stronger liquidity buffers," stated Fitch Ratings.
Meanwhile, another international credit rating agency Standard & Poor's (S&P) released its second-quarter economic outlook reports for both the United States and emerging markets.
The report highlights significant divergences in growth projections for emerging countries in 2024, with expectations of moderate growth for many countries that performed better in 2023, and slightly increased growth for some countries that showed weaker performance. Accordingly, the growth forecast for Türkiye was revised upward from 2.4 percent to 3 percent for 2024, and from 2.7 percent to 3 percent for 2025.
Additionally, the report identifies that the largest upward revisions in growth forecasts for this year compared to the November report were made for Mexico with 70 basis points, Türkiye with 60 basis points, Peru with 50 basis points, and India with 40 basis points.
In 2023, Türkiye's economy grew by a larger than-expected 4.5 percent, exceeding the government's forecast of 4.4 percent.