Fitch Ratings has upgraded Turkey’s credit rating on stronger fiscal policies and reduced financial risks.
Turkey’s ratings have been increased one notch to B+ from B with a positive outlook, the agency said on Friday.
“The upgrade reflects increased confidence in the durability and effectiveness of policies implemented since the pivot in June 2023, including greater-than-expected front-loading of monetary policy tightening, in reducing macroeconomic and external vulnerabilities,” Fitch said.
“Inflation expectations have eased and external liquidity risks have moderated, reflected by more favourable external financing conditions, higher reserves and a narrowing current account deficit.”
Last month, Turkey named the central bank’s deputy governor Fatih Karahan as its head following the resignation of Hafize Gaye Erkan, signalling a continuation of the transition to more investor-friendly, orthodox economic policies that Ms Erkan put in place.
Under Ms Erkan, the central bank abandoned an ultra-low interest rates policy that President Recep Tayyip Erdogan had advocated for years and focused on increasing interest rates to address rising inflation.
“The central bank has tightened monetary conditions through a combination of larger-than-expected interest rate hikes to 45 per cent, absorption of excess liquidity through reserve requirements and deposit auctions, and targeted credit policies,” the rating agency said.
As a result, inflation expectations have eased, and “overall credit growth has slowed, but it remains high for household loans,” it added.
Fitch expects inflation to average 58 per cent in 2024 and finish the year at 40 per cent, above the central bank's intermediate target of 36 per cent. Inflation is forecast to fall further to 29 per cent in 2025 amid continued tightening of the monetary policy.
International reserves stood at $131 billion at the beginning of March, $32 billion higher than June 2023, according to the agency.
Turkey’s current account deficit is forecast to fall to 2.6 per cent of GDP in 2024, from 4.2 per cent of GDP in 2023 and further to 2.2 per cent of GDP in 2025 as growth in tourism receipts continues, and tight monetary policy and trade growth with its main partners are maintained.
Turkey is strengthening its trade ties. Its non-oil trade with the UAE grew by 103.7 per cent year-on-year in 2023, the highest among the top 10 trading partners after the two countries in September put their Comprehensive Economic Partnership Agreement into effect.
It is also strengthening its ties with Saudi Arabia, the Arab world’s largest economy.
“Growth was resilient at 4.5 per cent in 2023, but we expect that a tighter policy mix weighing more forcefully on domestic demand and private consumption after the first quarter of 2024, combined with relatively weak external demand, will result in growth slowing to 2.8 per cent in 2024,” Fitch said.
Growth could then pick up to 3.1 per cent in 2025 on improved growth prospects for Turkey's main trading partners, according to the agency.
Turkey's economy is forecast to grow 3.1 per cent in 2024 and 3.2 per cent in 2025, the International Monetary Fund said in its January report. Its economy expanded by 4 per cent in 2023.
New UK refugee system
- A new “core protection” for refugees moving from permanent to a more basic, temporary protection
- Shortened leave to remain - refugees will receive 30 months instead of five years
- A longer path to settlement with no indefinite settled status until a refugee has spent 20 years in Britain
- To encourage refugees to integrate the government will encourage them to out of the core protection route wherever possible.
- Under core protection there will be no automatic right to family reunion
- Refugees will have a reduced right to public funds
In-demand jobs and monthly salaries
- Technology expert in robotics and automation: Dh20,000 to Dh40,000
- Energy engineer: Dh25,000 to Dh30,000
- Production engineer: Dh30,000 to Dh40,000
- Data-driven supply chain management professional: Dh30,000 to Dh50,000
- HR leader: Dh40,000 to Dh60,000
- Engineering leader: Dh30,000 to Dh55,000
- Project manager: Dh55,000 to Dh65,000
- Senior reservoir engineer: Dh40,000 to Dh55,000
- Senior drilling engineer: Dh38,000 to Dh46,000
- Senior process engineer: Dh28,000 to Dh38,000
- Senior maintenance engineer: Dh22,000 to Dh34,000
- Field engineer: Dh6,500 to Dh7,500
- Field supervisor: Dh9,000 to Dh12,000
- Field operator: Dh5,000 to Dh7,000
What is dialysis?
Dialysis is a way of cleaning your blood when your kidneys fail and can no longer do the job.
It gets rid of your body's wastes, extra salt and water, and helps to control your blood pressure. The main cause of kidney failure is diabetes and hypertension.
There are two kinds of dialysis — haemodialysis and peritoneal.
In haemodialysis, blood is pumped out of your body to an artificial kidney machine that filter your blood and returns it to your body by tubes.
In peritoneal dialysis, the inside lining of your own belly acts as a natural filter. Wastes are taken out by means of a cleansing fluid which is washed in and out of your belly in cycles.
It isn’t an option for everyone but if eligible, can be done at home by the patient or caregiver. This, as opposed to home haemodialysis, is covered by insurance in the UAE.
How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
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Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
