Goldman Sachs: Turkey’s economy to grow 4 pct in 2018

By Gokhan Kurtaran

LONDON (AA) – Turkey’s economy will grow at a rate of 4 percent in 2018, predicted Goldman Sachs on Thursday.

“The GDP growth rate in Turkey moderated from 11.3 percent in the third quarter of last year to 7.3 percent in the fourth quarter of last year, above our and consensus expectations of 6.1 percent and 6.7 percent, respectively,” said the investment banking giant in a note.

“The growth rate for 2017 as a whole stood at 7.4 percent, significantly higher than the 3.2 percent growth rate recorded in 2016,” it added.

It also noted that growth was driven by domestic demand and the current account deficit deteriorated from -6.1 percent of GDP in Q3 to -7 percent in Q4.

“Going forward, we expect the Turkish economy to grow at a rate of 4.0 percent in 2018, in line with consensus expectations. The government’s pro-growth bias creates upside risks to our views, whereas the deterioration in the inflation outlook and the current account deficit pose risks for slower growth,” Goldman Sachs said.