Recently, the credit rating agency Moody’s has issued a report on Turkey’s credit profile assessing its economic outlook for 2018. According to the agency, the Turkish economy will become more flexible and more resilient in the year to come. Foreign investors who want to open companies in Turkey rely very much on these predictions. If you want to open a company in Turkey, our company registration agents can assist you.
At the middle of November, Moody’s issued the last rating for Turkey for the year 2017. The current rating Ba1 indicates a resilient credit profile for the Turkish economy, compared to the previous rating which was less optimistic. Also, the public finances for the incoming year are expected to grow stronger against the political risks and vulnerability driven by external factors.
The new rating also indicates that the Turkish economy is flexible because it relies on the middle class, which is expected to continue growing in the 2018.
Turkey’s sovereign credit will be a good one, considering that public finances are one of the country’s strengths because they are low and expected to decrease even more.
Those interested in setting up a business in this country can rely on our company formation services in Turkey.
The report issued by Moody’s does not assess the performance of the Turkish economy on an internal level, but is also assesses it based on the external factors which are most of the times very important. This is why, even if the Turkey’s fiscal balance will be a good one in the year to come, it is expected to feel some pressure from the higher global interest rates.
The report indicates that Turkey’s debt stock will manage to remain below the threshold of 30% of the Gross Domestic Product. Also, the pressure put by a higher rating is expected to lead to improvements in the administrative environment and competitiveness.
The report concludes that Turkey’s policy framework related to the macro-economy and the maintenance of a fiscal stability will weigh a lot the country’s sovereign creditworthiness.
For full information on the requirements to start a business in this country, please contact our Turkish company formation advisors.