Goldman Sachs raises Turkiye 2022 GDP growth forecast to 5.5% from 3.5%

Anil Panchal FXStreet

Goldman Sachs (GS) said on Thursday it had raised its forecast for Turkey's 2022 GDP growth to 5.5% from 3.5%, while lifting its 2022 current account deficit forecast to $45 billion from $36 billion, per Reuters.

The news also adds that the GS said the Turkish Central Bank's forex reserves had risen sharply since the third week of June and that, with less of an external funding constraint, it was updating its macro forecasts and market views.

Key quotes

The additional funding implies that the need to tighten policy to avoid an external funding gap has declined substantially, and we think policymakers will use this space to support growth.

Data on Wednesday showed Turkey's economy grew 7.6% year-on-year in the second quarter as expected, extending a hot streak on strong domestic demand and exports.

Also read: USD/TRY finally reaches 18.20 and beyond, new 2022 highs

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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