Standard & Poor's (S&P) has revised its outlook for Turkey from stable to negative, attributing this to risks from lower interest rates.

Turkey's rising current account deficit, limited usable reserves and high inflation are making the outlook for the exchange rate cloudy, the IEA said.

At the end of February, the Turkish central bank cut the key interest rate to 8.5% to mitigate the impact of the earthquake that struck the south of the country on the economic situation.

The Turkish government is counting on supporting investments, production and exports through a low interest rate.

Positive outlook

In a related context, the agency revised the outlook for the Sultanate of Oman from stable to positive, and affirmed its credit rating at the level of "BB", which means stable creditworthiness.

The agency attributed the reason to the government's efforts to improve financial performance and implement policies that support economic growth, which was reflected in the decrease in public debt.

She said that public debt fell to 16.6 billion riyals ($43 billion), and pointed out that the debt-to-GDP ratio fell from more than 60% in 2021, to about 40% last year thanks to government policies.

The agency predicted that the economy will grow at an average rate of 2.5% per year until 2026.