Consequences of turbulence in Turkish markets will be obvious this year, when earnings reports season will star next week, Bloomberg assumes. Analytics think that a new row of bad news for country’s economy will start along with these reports.

Growing inflation and tension in relations with the US hit Turkey’s economy. Lira fell by 24% in regards to dollar in third quarter only, which resulted in higher borrowing costs for company’s leaders abroad. Therefore, the companies with high level of foreign debt will show significant profit decline.

At the same time, companies getting their revenues in foreign currency might show profit gains by 30%-60%.

Expectation of slower economic development will put pressure on earnings forecasts at the end of 2018 and in 2019.

According to experts, earnings of companies will fall by 2% in next 12 months since end of June. This is the first decline in more than two years and the biggest cut since the quarter ended in March of 2014.