Fitch Ratings has announced its economic outlook expectations for Turkey in 2025.

The international rating agency Fitch Ratings reported that in Turkey, the continuation of tight monetary policy conditions in 2025 will be accompanied by a significant reduction in the budget deficit and rational income policies, leading to an expected increase in policy consistency.

In its analysis regarding the 2025 outlook for Eastern European economies, the international credit rating agency Fitch Ratings predicted that the improving economic growth expectations in these countries would be balanced by weak public finances and high geopolitical risks.

The analysis, which also included assessments regarding Turkey, noted that the balancing of Turkey's economic policies has led to a significant reduction in external vulnerabilities and an improvement in market perception.

GRADUAL EASING RECOMMENDATION

The analysis stated that to reduce high and relatively sticky inflation, there needs to be consistency in policies and a gradual easing of monetary policy. It was expressed that "the implementation of traditional policies in Turkey has significantly improved international reserves while reducing external vulnerabilities and the current account deficit. However, inflation remains high and sticky. This situation has also been reflected in a significant upward revision of the Central Bank of the Republic of Turkey's inflation forecast for 2024-2026. For 2025, we expect an increase in policy consistency as tight monetary policy conditions will be accompanied by a significant reduction in the budget deficit and rational income policies."

TURKEY WILL BE UNDER CLOSE MONITORING NEXT YEAR

The analysis included that among the developments to be monitored in the Eastern European region in 2025 are Turkey's rebalancing process and the continuity of its policies, efforts to reduce inflation, the continued rebuilding of the credibility of monetary policy, and the maintenance of improvements in access to external financing.