WASHINGTON

Fitch rating agency affirmed Turkey's credit rating at "BB" with a stable outlook Friday.

“Economic growth is recovering strongly, inflation has fallen from 20% at the beginning of last year, the current account has improved and external risks, although still high, have eased, supported by the real effective exchange rate adjustment and private sector deleveraging,” it said in a statement.

The agency forecasted 4% GDP growth in 2021 with stronger investment, some moderation in private consumption growth and a smaller drag from net exports.

“We continue to estimate Turkey's trend rate of growth at 4.3%,” it added.

Fitch forecasted the current account returns to deficit, of 0.9% of GDP in 2020 and 1.8% in 2021.

It added that inflation will be 10.5% at end-2020, helped by tax adjustments and lower energy prices, and 10.0% at end-2021.

*Writing by Gozde Bayar