The European Bank for Reconstruction and Development (EBRD) has upgraded the country’s economic growth forecast by 3.5 points to 9% for 2021 with the positive impact of rebound in domestic demand and strong exports, according to its Regional Economic Prospects report. However, the bank also warned about increasing risks towards macroeconomic stability.
The country’s economic growth rate can reach double digits by the end of this year although international institutions estimate 9% growth, President Recep Tayyip Erdogan said in a video message at the Turkey 2023 Summit held by the media firm Turkuvaz Medya.
The government eyes a healthy and balanced growth by strengthening macroeconomic and financial stability, according to Minister of Treasury and Finance Lutfi Elvan. “We attach importance to low inflation and foreign exchange (FX) rate stability,” Elvan said at the same event. Interpretations that the government aims for high FX rates to support exports aren’t true, according to Elvan. “Turkey implements floating rate regime, and the value of FX rate is set in the market,” he noted.
Borsa Istanbul’s BIST 100 index increased by 1.85% to 1,575.67 points, an all-time high, at Thursday’s close. BIST 100 index earned 28.64 points over Wednesday’s close. The risk appetite had a high course in the markets after the Federal Reserve (Fed) kept the interest rate steady in line with expectations, reduced monthly asset purchases by USD 15bn and Fed Chair Jerome Powell’s statements. BIST 100 index keeps its level this morning.
The Ministry of Treasury and Finance will release cash realizations for October (5.30 pm).
The Parliament’s Planning and Budget Commission will discuss the 2022 budget of the Ministry of Labor and Social Security.