The IMF Expects Turkey's Economy to Grow in 2024

 

Remember when we talked about investing in the Turkish Lier if you believed the economy of Turkey would pull through financially?  Well, here is the report from the IMF. 

According to the International Monetary Fund, Turkey's economy is expected to grow 4.0 percent this year and 3.25 percent next year, with inflation falling to 46 percent by 2024.

During a visit to Turkey in September, the IMF mission leader James Walsh said: "Growth has remained strong despite the tragic earthquakes (in Turkey) in February."

According to the World Bank, the Turkish economy will grow by 4.2 percent this year instead of 3.2 percent.

S&P, a credit rating agency, revised its outlook for Turkey from "negative" to "stable" last month due to policy changes.

Meanwhile, the agency maintained the country's B credit rating.

The agency said Turkey's new economic team was "taking measures to calm the overheating economy and stabilize the exchange rate."

A lifelong supporter of the unorthodox economic theory that high-interest rates cause inflation, Turkish President Recep Tayyip Erdogan has been Turkish President since 1983. But he reversed his approach after winning a tough election in May that coincided with the worst economic crisis of his two decades of rule.  To guide the economy, he hired Wall Street experts.

During its last meeting, Turkey's central bank, led by Hafidha Erkan, decided to raise interest rates to 30 percent, the highest rate in 22 years.