Turkish Households' Confidence in Lira Remains Resilient: S&P
11 Articles
11 Articles
S&P Global Ratings stated that the fund crisis did not translate into a widespread loss of confidence in the Turkish Lira, and assessed that the contagion in the financial system remained limited. However, the institution noted that energy prices, inflation, and the growth outlook continue to be the main risks for the Turkish economy in the coming period.
S&P Global Ratings predicted that the war in the Middle East would increase inflation in Türkiye through energy prices and slow economic growth. S&P argued that household confidence in the Turkish lira remains intact and that the economy can weather the energy shock.
Economic giant S&P Global Ratings, which estimates Turkey's economy can weather the shock even though the war in the Middle East has increased inflation pressure on energy prices, expects growth to come in at 3 percent this year.
S&P Global Ratings lowered its growth forecast for Turkey to 3%, predicting that the war in the Middle East will increase inflation in Turkey through energy prices. The agency expects average inflation to be 30.9% this year, but assessed that household confidence in the Turkish lira remains intact.
S&P Global Ratings stated that the fund investigation and liquidations did not lead to widespread loss of confidence in Turkey. The agency assessed that fund outflows were largely directed towards Turkish Lira deposits, and that the measures taken prevented financial contagion.
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