Goldman Sachs: Fund crisis could cut growth by 0.7 percentage points
Goldman Sachs stated that the impact of Türkiye's investment fund crisis on economic growth could be more severe than the Central Bank of the Republic of Türkiye (CBRT) anticipates.
According to a November 12 report prepared by economists Clemens Grafe and Başak Edizgil, the fund crisis is expected to reduce economic growth by 0.7 percentage points over the coming quarters. The report described the CBRT's decision to ease credit growth limits as a measure aimed at preventing a further slowdown in lending.
Goldman Sachs' financial conditions index recorded a tightening equivalent to 100 basis points in September, reaching its tightest level since 2024. The bank warned that deteriorating financial conditions could weigh on domestic demand and economic activity. Meanwhile, the CBRT's emphasis on improving core inflation and slowing domestic demand suggests that additional interest rate cuts could be considered in December. Goldman Sachs believes the current economic outlook increases the likelihood of further monetary policy easing.