Turkey - Goldman Sachs lowers its economic growth forecast
Thursday, 04 01 2021, Category: Economy, Country: Turkey
Goldman Sachs said on Tuesday that it expects inflation in Turkey to rise to 18% in April before easing to 15% by the end of the year, after the ouster of the central bank governor sparked a lira sales wave this month.
Goldman, who had previously expected inflation to reach 12.5 percent by the end of 2021, said the central bank under the leadership of its new governor, Shehab Koçioglu, would not be able to cut interest rates until the fourth quarter given the lira’s fall of 13 percent since his appointment on March 20.
The US investment bank also lowered its forecast for economic growth in Turkey for 2021 to 3.5 percent from 5.5 percent and its forecast for the current account deficit to 1.5 percent of GDP from 3.5 percent.