LONDON
The current global economic environment is favorable to Turkey, Fitch Ratings Senior Director Paul Rawkins said Monday.
Fitch, international credit rating agency, affirmed Turkey's long-term credit rating at BBB- late Friday, leaving the outlook stable.
Turkey is expected to grow by 3.2 percent, Rawkins said and added that there is a base effect on the growth expectation for the year as last year's growth turned out to be lower than predicted.
As Turkey is dependent on external capital inflows to support growth, low oil prices are a positive, Rawkins said.
"In this sense, the current external environment is very favorable as it is dominated by lower oil prices and ample global liquidity," he said. He believes Turkish companies and institutions retain market access at favorable rates with no indication of any sudden stop of capital inflow.
Fitch forecasts inflation at 7.5 percent this year and 6 percent in 2016, he said and gave falling oil prices and ample global liquidity as the key factors.
The recent volatility of the Turkish lira did not figure significantly in Fitch's analysis. "Turkey is a volatile place," Rawkins said. We look at policy, not exchange rates, he added.
