Ratings agency points to suppressing effects of interest rates and high inflation in emerging economies.
Moody's rating agency has estimated
In its Credit Outlook report published on Monday Moody's said that growth estimations for some emerging economies have been revised in relation to interest rate rises introduced by central banks to cope with increasing inflation and that this would suppress growth outlook.
Moody's research suggests that high inflation, high interest rates and a slowdown in exports may suppress the growth outlook of emerging economies for this and next year but developed economies – fueled by investments – are expected to grow significantly in 2015.
As one of emerging economies
However, Turkish economic officials have repeatedly expressed optimism in four percent growth as a medium-term economic target and their commitment to achieve this goal.
Speaking in July,
The agency's report indicates that the global economy could lag behind average performance this year, stressing that a recovery may only start from next year while the G-20 major economies are expected to grow by 2.8 percent on average this year and then speed up to 3.2 percent in 2015.
Political risk still high in
The outright victory of Turkish Prime Minister Recep Tayyip Erdogan as president in Sunday's vote does little to ameliorate the political risk to
Erdogan was elected Sunday after securing 51.96 percent of the vote in the first round of
The victory consolidates Erdogan's hold on power after a 12-year tenure as prime minister. Erdogan will succeed
"The outcome avoids a second ballot and confirms Erdogan's personal standing with a large part of the electorate. But political risk will weigh on
Fitch said that after Erdogan's victory, political continuity does not eliminate political and social unrest. "
Fitch warned that Erdogan's "pressure" on the
Erdogan and other government officials have criticized the central bank for maintaining high interest rates, which are possibly limiting economic growth.
Fitch also said that macroeconomic outcomes in 2014 have been broadly positive for
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