EUR / TL – Boom at the Bosphorus

Turkish Lira does not reflect the economic growth – not yet!

by Ralph Kratzer

Turkey’s tough reforms pay off.

Although the economy, after a growth of 8.5 percent in 2011, grew in the past year by “only” 2.6 percent, in 2013 and 2014 the economy should grow again about 4 percent, according to the World Bank.

Rosy growth prospects…

The economic and financial reforms are also honoured by the major rating agencies. After Fitch raised its rating in November 2012, now the credit auditor of Moody’s upgraded the credit rating in the investment-grade range.

Infrastructural projects amounting to the equivalent of about 200 billion Euros – the world’s largest airport included -, the favourable geographic location and a population that is half under 30 years old and wants to consume, could not only support long-term economic growth. Also, the currency which lately came under some pressure against the Euro could improve.