The road ahead for Turkey isn't pretty.
Alongside downgrades from ratings agencies Moody's and S&P moving Turkey's debt closer into non-investment — or junk — territory, experts now predict a recession within the next year.
"The downgrade reflects our expectation that the extreme volatility of the Turkish lira and the resulting projected sharp balance of payments adjustment will undermine Turkey's economy," S&P Global Ratings said in a statement Friday. "We forecast a recession next year."
A recession in the country of 80 million, which sits at the crossroads of Asia and Europe and is home to both NATO's second-largest military and more than 3.5 million Syrian refugees, would be no small event.
The lira's roller-coaster moves have knocked hundreds of points off global markets in single trading days, and triggered sell-offs across emerging markets. Turkey comprises 1 percent of global gross domestic product (GDP) and has been making headlines most recently for its heated spat with Washington, with whom it has traded sanctions and tariffs.