The agency pointed out that Turkey’s economic growth is strong compared to its peers, however, per capita income in the country has been on a downward trend since 2013 in dollar terms.

Meanwhile, Fitch Ratings has revised the Outlook on Turkey's Long-Term Issuer Default Ratings (IDRs) to negative from stable and affirmed the IDRs at 'BB-'.

“The central bank's premature monetary policy easing cycle and the prospect of further rate cuts or additional economic stimulus ahead of the 2023 presidential election have led to a deterioration in domestic confidence, reflected in a sharp depreciation of the Turkish lira, including unprecedented intra-day volatility, and rising inflation,” the agency said.

“These developments create risks to macroeconomic and financial stability and could potentially re-ignite external financing pressures,” it added. (ILKHA)