Global investment bank Morgan Stanley has concluded that Türkiye's economy is stabilizing following turbulence earlier in the spring of 2006, citing recent macroeconomic data and current policy direction as evidence of a recovery.
The bank highlighted the Turkish Central Bank's decision to hold interest rates steady as the clearest sign of normalization, and praised the country's fiscal discipline. Public sector borrowing as a share of gross domestic product fell sharply, from 17.5 percent in 2001 to 0.8 percent in 2005, and Türkiye became a net debt repayer for the first time.
Morgan Stanley projected that if Türkiye sustains its fiscal discipline, it could achieve the long-sought macroeconomic stability. The bank also forecast that inflation would continue to decline gradually, consistent with the Central Bank's firm monetary stance.
Morgan Stanley placed its year-end inflation estimate at 9.2 percent.
Historical summary. TurkishPress restated this wire report, first published in September 2006, in its own words.