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The international rating agency Fitch Ratings lowered the long-term revaluation of the Turkish currency from BB to BB + with a "negative" forecast.
Increasing the current account deficit, exacerbating external financing conditions, the sharp rise in inflation and the impact of the decline in the exchange rate on the private sector with significant foreign currency debt says Fitch. has deteriorated in recent months, and the initial political action since the June elections has increased uncertainty. All this hinders the development and implementation of measures for a soft landing of the economy, said the agency.
Turkey will need external financing in the order of $ 229 billion in 2018, including covering the current account deficit of $ 54 billion and refinancing debts of $ 118 billion
Fitch suggests that By the end of 2018, Turkey's gross international reserves will be reduced to $ 96 billion, and net – up to half that amount
Annual inflation is currently jumping to 15, 4% (m growth of 2.6%) in June, after the sharp depreciation of the pound by 27% so far. Fitch predicts an average annual inflation rate of 13% in 2018 and 10.8% in 2019. And an increase in the state's fiscal deficit from 2.1% in 2017 to 2.9% of the GDP this year
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