Credit development in regional currency sloweddown to 30% YoY in August 2024, down from 69% one year previously. A more limiting policy mix is anticipated to lengthen the near-term financial downturn, with genuine GDP development of 3.5% in 2024 (although greater than a previous forecast of 3.2%), and 3.2% in 2025 (unchanged), down from 4.5% in 2023.
Carefully Managed Policy Adjustments Unwind External Imbalances, Rebuild Buffers
The continued advantages of Türkiye’s financial policy pivot, presuming the authorities hold their course, stay considerable in putting the economy on a sounder footing in terms of monetary stability and prospective development.
One secret sign of development is moderating stress on the balance of payments, due to lower funding requirements and more varied financing sources.
The present account turned favorable in June-July 2024 and the surplus will expand evenmore needto the present