According to an S&P Global analyst, Turkey has made measurable progress in addressing its inflation crisis since shifting its economic strategy in 2023. By abandoning previous policies that favored low interest rates, the administration under President Recep Tayyip Erdoğan has implemented higher borrowing costs to dampen consumer spending and stabilize prices. While the agency acknowledges that the path toward disinflation has experienced some delays, it maintains that the overall strategy remains intact. Currently holding a BB- credit rating with a stable outlook, Turkey faces a potential hurdle in 2028. Analysts warn that upcoming elections could serve as a critical test for the government's commitment to maintaining these restrictive monetary policies, which are essential for long-term economic stability and debt repayment capacity.
Source : Turkish Minute
