Goldman Sachs cuts Turkey 2021 growth forecast to 3.5% year-on-year

Goldman Sachs cut its Turkey 2021 economic growth projection to 3.5% year-on-year from a previous estimate of 5.5%.

Goldman Sachs revised downward its 2021 forecasts for the Turkish economy. Accordingly, the institution cut its 2021 economic growth estimation for Turkey to 3.5% from 5.5% and lowered its current account deficit (CAD) prediction to 1.5% of Gross Domestic Product (GDP) from 3.5%.

Following the Central Bank’s management change, the uncertainty around the policy making process and the bank’s reaction function has significantly increased, the analysis said.

“Macroeconomic pressures including CAD and high inflation rate continue,” the Goldman Sachs added.

The institute stated that they focused on these factors while they revised the country’s economic outlook. 

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