Goldman Sachs and JPMorgan Chase revised up their 2017 growth estimates for the Turkish economy, in an announcement made recently.
Goldman Sachs expects the economy to grow 2.3%, while JPMorgan Chase estimates a 2.6% expansion. The banks previously projected 1.8% growth in Turkish economy.
Decision comes after the Turkish Statistical Institute released GDP figures that showed a 3.5% increase in the fourth quarter and 2.9% for 2016.
“Turkish GDP growth rebounded strongly... exceeding both our and consensus expectations,” Goldman said in a note. The bank said the growth in consumption was a surprise and the strongest recovery was in exports.
CONSUMPTION UP BY 5.7%
Consumption is up by 5.7% in the fourth quarter after contracting 1.7% in previous quarter. Similarly, after exports declined 1.9% and 9.3% in the second and third quarters respectively, Q4 saw a 2.3% upward move.
“We expect exports to be a key driver of growth in the coming quarters,” Goldman said.
Capital Economics, a London-based independent research company, also revised Turkey’s growth projection for 2017 from 1.8% to 2.5%.
“Growth in consumer spending and fixed investment was faster than previously estimated in the preceding quarters,” it said in a note. The firm expects the economy to grow 2.5% in 2017.