Scope Ratings expects economic growth of only 2.3% for Turkey in 2022 and 2.4% in 2023, after the 11% growth recorded by the Turkish economy in 2021, warning of increasing risks to the Turkish government's long-term ability to repay its debt.
In terms of inflation, the German credit rating agency said it rose to 61.1% in March and "appears to remain elevated".
"Structurally loose monetary policy, high inflation, negative net foreign exchange reserves as well as increased and rising foreign exchange exposure increase the risks facing the Turkish government's long-term ability to repay its public debt, especially during sudden future depreciations of the Turkish lira," it warns.
(CNA)
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