Fitch Ratings, a leading provider of credit ratings in the world, lowered Turkey’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'B' with a Negative Outlook, due to the country’s weak external finances, worse economic distortions, and political and geopolitical risks.

Fitch’s GDP growth forecast was slowed to 2.5% in 2023 from 5.6% in 2022. However, the growth was expected to increase slightly to 3% in 2024 as the improved external demand and the reconstruction process offset the policy stance with less expansionary.