Fitch: a negative outlook for the Turkish economy

Fitch Ratings said it did not expect Turkey to achieve the target levels of its fiscal consolidation plan in 2018 and 2019 because of the impact of a weak economy on revenue.

The agency confirmed that the outlook for the "Turkish economy" negative, while keeping the credit rating at (BB).

Fitch added that Turkey's monetary policy has long proved itself incapable of stabilizing inflation at single-digit levels.

The agency predicted that inflation in Turkey will remain in the double digits until the end of 2020.

Last week Moody's International Credit Rating maintained a negative outlook for the Turkish economy due to the consequences of the exchange crisis.

The Agency based its negative outlook on the Turkish economy on the sharp fluctuations in exchange rates, the difficult financial conditions, and the weak clarity of the political direction of the state.

Bloomberg said the impact of these factors is compounded by Moody's forecasts of a contraction of the Turkish economy in 2019.

The crisis in Turkey's markets and exchange rates has not stopped its sharp effects on the domestic economy for the fifth month in a row, amid a blurry domestic market potential.

The Turkish sovereign wealth fund has pledged to borrow $ 1 billion from international banks, more than two years after it was founded, according to informed sources.

Three sources told the agency that the fund, officially known as "Turkish Farlick Fono", which is largely inactive, will borrow money early next year.

In another context, the Lira crisis pushed the Turkish economy's growth rate to a violent drop in the third quarter of this year, according to official data from the Turkish Statistical Institute.

The economy grew by 1.6 percent in the third quarter of this year, compared with 11.5 percent in the third quarter of 2017, indicating that the Turkish economy was hit by a lira crisis during the period.