JP Morgan revises up Turkey's 2021 growth forecast to 8.4%

By Aysu Bicer

ANKARA (AA) - US-based multinational banking and financial services company JP Morgan on Wednesday revised its estimate for Turkey's economic growth for 2021 from 6.8% to 8.4%.

According to a report published by the firm, Turkish economy continued to grow "at full speed thanks to robust domestic demand and surging export demand in the second quarter."

The country's economy expanded 21.7% year-on-year in the second quarter of 2021, in line with expectations, the Turkish Statistical Institute (TurkStat) announced on Wednesday.

Following the rapid recovery since the start of the second half of last year, the JP Morgan report said, it is logical to see some moderation in growth in the upcoming period.

It also warned high unemployment as well as coronavirus driven uncertainties pose down side risks to growth.

However, it noted that domestic sentiment is resilient, loan growth is still high and export figures are quite strong, saying high frequency data back up the case for continued growth strength.

The firm did not change its 2022 forecast, keeping at 3.4%.

On Tuesday, international credit rating agency Moody's also upgraded Turkey's economic growth forecast for 2021 from 5% to 6%.

It noted that a recovery in the tourism sector supported the growth in the Turkish economy, thanks to the ongoing global economic recovery and progress in the COVID-19 vaccination.