Turkey’s credit rating outlook stable, says Japan agency
Japan Credit Rating (JCR) Agency has confirmed Turkeyâs current credit status and said the countryâs outlook is stable.
Turkeyâs rating is BBB-/BBB-, which the agency said is supported by the countryâs relatively developed economy, which is larger than its Middle Eastern neighbors, with a Gross Domestic Product (GDP) per capita exceeding $10,000, the agency said in a statement released July 10.
The JCR added that sound public, banking and household sectors provide a buffer against economic shocks and are underpinned by strict fiscal policy and banking supervision.
The agency, however, said the ratings are constrained by a âchronicâ current account deficit and heavy reliance on international financial markets for external financing.
The organization warned Turkey needs to tackle fundamental challenges, such as its low savings rate, which was 12.6 percent in 2013, chronically high inflation, which was 9.2 percent in consumer prices in June and heavy dependence on importing certain goods.
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