May 16 (SeeNews) - The Turkish economy is steadily recovering after a softer performance in the past year, ratings agency Standard&Poor's said in a report on Thursday.
"Strong growth in Turkey's main export markets outside of Europe, improved prospects for consumer demand, and solid investment growth should help [gross domestic product] GDP to expand by about 4% this year and next", Jean-Michel Six,S&P's chief economist for Europe, Middle East and Africa, said in the report titled, "As Turkish Economy Growth Bounces Back, The Centra Bank Faces A Familiar Quandary".
S&P warned that strong capital inflows into the country could spark a surge in asset prices, and that the country's current account deficit is likely to expand to some 7.0% of GDP this year. Inflation is projected to surpass the Turkish central bank's expectations of some 5.0% in the current year, it said in a statement.