Favorable spreads to attract inflows

■ INTEREST RATES ON LIRA FALLING

■ DEPOSITS REGAINING THEIR APPEAL

■ CREDIT CRUNCH WORSENS

The economy is expected to witness zero growth in 2019. The government will face challenges in achieving its targeted budget deficit this year, according to the two credit rating agencies Moody’s Investors Service and Fitch Ratings. Foreign direct investment (FDI) is estimated to have grown by 14 percent to $2.9 billion in 2018. The salary hike granted to public sector employees and teachers and rising interest rates on deposits have contributed to an improvement in household income which resulted in a steady demand for consumer goods and services despite challenges. Widening local interest spreads and rising oil prices are expected to have a net positive impact on capital inflows to the country. The projected rise in remittances, foreign investment,