Merrill Lynch more optimistic about Turkey economy
Sunday, May 31, 2009
A new report by Merrill Lynch (MER) Global Research predicts 3.2 percent economic growth rate in Turkey for 2010, despite the general slowdown in the world economy.
Merrill Lynch forecasts global growth of 1.3 percent in 2009, down from 3.2 percent in 2008, rising to 3.1 percent in 2010. Turkey will make a quicker recovery than other countries of the region thanks to comparatively minimal damage in the banking sector, and it expects lower interest rates and higher government spending to stimulate domestic demand. The analysis expected a 6.3 percent inflation rate in Turkey in 2009. Turkey will emerge as one of the few safe havens for investment following the end of the crisis and entrepreneurs who invest in Turkey will not lose out, but will instead make considerable profit.
Meanwhile, Mehmet Şimşek, Turkish state minister for the Treasury told a New York meeting of a U.S.-based Turkish-American business association that his country's economy would begin recovery by 2010. Simsek added that a permanent recovery of the global economy would also require Institutions such as the IMF, the World Bank and other regional banks should do more to support countries like Turkey because these countries have been the locomotive of the global economic growth over the last years.
According to Finans Invest, the more good news for Turkish investors is the stocks closed their best month since 2003, while they may rally further after the benchmark index crossed the 200-day moving average for the first time in almost a year and a half. The benchmark index jumped after Tevfik Bilgin, head of the Banking Regulation and Supervision Agency, said profits at banks will increase and their balance sheets passed a stress test.
Social BookmarkingMerrill Lynch forecasts global growth of 1.3 percent in 2009, down from 3.2 percent in 2008, rising to 3.1 percent in 2010. Turkey will make a quicker recovery than other countries of the region thanks to comparatively minimal damage in the banking sector, and it expects lower interest rates and higher government spending to stimulate domestic demand. The analysis expected a 6.3 percent inflation rate in Turkey in 2009. Turkey will emerge as one of the few safe havens for investment following the end of the crisis and entrepreneurs who invest in Turkey will not lose out, but will instead make considerable profit.
Meanwhile, Mehmet Şimşek, Turkish state minister for the Treasury told a New York meeting of a U.S.-based Turkish-American business association that his country's economy would begin recovery by 2010. Simsek added that a permanent recovery of the global economy would also require Institutions such as the IMF, the World Bank and other regional banks should do more to support countries like Turkey because these countries have been the locomotive of the global economic growth over the last years.
According to Finans Invest, the more good news for Turkish investors is the stocks closed their best month since 2003, while they may rally further after the benchmark index crossed the 200-day moving average for the first time in almost a year and a half. The benchmark index jumped after Tevfik Bilgin, head of the Banking Regulation and Supervision Agency, said profits at banks will increase and their balance sheets passed a stress test.
Labels: Economy, Turkish-property
