Turkey to be 5th fastest emerging economy at year-end: Moody's report

Turkey to be the fifth fastest emerging country amongst top twenty world economies at the end of 2013, Moody's recently published report says.

Turkey will be the fifth fastest emerging country amongst top twenty world economies at the end of 2013, Moody's recently published report said. 

Turkey will reach a growth of 3-4 percent in 2013 and reach 3.5-4.5 % in 2014, the Global Macro Outlook 2013-15 report of Moody's announced.

At the top of the list is China with an expectation of 7-8% increase, followed by Indonesia in 5-6%, India in 4-5% and Saudi Arabia in 3.5-4.5% at the end of 2013.

In 2014, China is expected again as top of the list with a growth of 7-8%, followed by Indonesia in 5-6%, India in 4.5-5.5% and Turkey and Saudi Arabia in 3.5-4.5%. 

Turkey is expected to reach a growth of 3.5-4.5% in 2015 and become the fourth fastest emerging economy amongst twenty world economies in 2014 and 2015. 

The report also stated the most narrowing economy is expected to be Italy with 2-1% followed by the European Zone with 1% at the end of the year.

Germany is expected to achieve a growth of 0-1% in the report, where US is expected to grow 1-2% in 2013, 2-3% in 2014 and 2.5-3.5% in 2015.  

"Following renewed concerns about the sustainability of many emerging markets’ growth models, in part associated with the potential impact of Fed tapering, the outlook for emerging markets has softened since August. While financial markets have stabilized following the delay of tapering, US monetary policy will still eventually shift back to a more ‘normal’ footing, and some emerging markets have already seen substantial falls in exchange rates and asset prices, despite partially recouping earlier losses. The relative price effects arising from currency declines are likely to hit activity in the short term, and pose challenges for monetary policy makers over the medium term in terms of striking the right balance between inflationary risks and growth," the report stated on further slowing in emerging market economies.