Turkey will be the fifth fastest emerging country amongst top twenty world economies at the end of 2013, Moody’s recently published report said. Turkey will reach a growth of 3-4 percent in 2013 and reach 3.5-4.5 percent in 2014, the Global Macro Outlook 2013-15 report of Moody’s announced.
At the top of the list is China with an expectation of 7-8 percent increase, followed by Indonesia in 5-6 percent, India in 4-5 percent and Saudi Arabia in 3.5-4.5 percent at the end of 2013. In 2014, China is expected again as top of the list with a growth of 7-8 percent, followed by Indonesia in 5-6 percent, India in 4.5-5.5 percent and Turkey and Saudi Arabia in 3.5-4.5 percent.
Turkey is expected to reach a growth of 3.5-4.5 percent in 2015 and become the fourth fastest emerging economy amongst twenty world economies in 2014 and 2015. The report also stated the most narrowing economy is expected to be Italy with 2-1 percent followed by the European Zone with 1 percent at the end of the year. Germany is expected to achieve a growth of 0-1 percent in the report, where US is expected to grow 1-2 percent in 2013, 2-3 percent in 2014 and 2.5-3.5 percent in 2015.
Following renewed concerns about the sustainability of many emerging markets’ growth models, in part associated with the potential impact of Fed tapering, the outlook for emerging markets has softened since August. While financial markets have stabilized following the delay of tapering, US monetary policy will still eventually shift back to a more ‘normal’ footing, and some emerging markets have already seen substantial falls in exchange rates and asset prices, despite partially recouping earlier losses.
The relative price effects arising from currency declines are likely to hit activity in the short term, and pose challenges for monetary policy makers over the medium term in terms of striking the right balance between inflationary risks and growth,” the report stated on further slowing in emerging market economies.
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