Fitch revises Turkey’s outlook from negative to stable

Credit ratings agency Fitch revised Turkey’s outlook from “negative” to “stable” on Friday and affirmed its “BB-“ rating.

The agency also revised up its GDP forecast for 2019 by 0.8 percentage points to 0.3% on the back of stronger second-quarter outturns.

Fitch maintained its GDP growth forecast of 3.1% for 2020 and 3.6% in 2021.

“Turkey has continued to make progress in rebalancing and stabilizing its economy, leading to an easing in downside risks since our previous review in July,” Fitch analysts said in a note.

“The current account balance has improved, FX reserves have edged up, economic growth has continued, inflation has fallen and the lira has held up despite large cuts in interest rates, buoyed by more supportive global financing conditions and the recent U.S. announcement on the removal of Syria-related sanctions.”