The international credit rating agency Standard & Poor’s (S&P) announced yesterday that it was upgrading Turkey’s debt rating to BB- with a ‘stable’ outlook from its previous rating of B+, which it had set last May following a further upward revision of the Turkish economy’s credit rating.
In a statement issued on Friday and quoted by Turkish agencies, Standard & Poor’s said that ‘the Central Bank of the Republic of Turkey’s (TCMB) tight monetary stance has enabled Turkish authorities to stabilize the lira, bring down inflation, rebuild reserves, and de-dollarize the financial system. Turkiye’s savings gap with the rest of the world has narrowed, which is visible in the approximately 4 percentage points of GDP decline in the current account deficit since 2022.’
S&P adds that the stable outlook for the Turkish economy reflects the balanced risks facing Turkey over the next 12 months, taking into account Ankara’s plans to reduce still-high inflation, manage workers’ wage expectations and rebalance the economy.
Standard & Poor’s, which last May already upgraded Turkey’s credit rating from B to B+ with a ‘positive’ outlook, also says that – despite tightening credit conditions and low labour demand – Turkey’s economy will grow at 2.3% in 2025, thanks to growth in exports of goods and services.
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Pablo Gómez is a specialist in Turkey and has been editor-in-chief of Hispanatolia since 2011. He has been analysing current affairs and geopolitics in Turkey and the surrounding region since 2006.
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