Turkish economy minister sees CA deficit at 4% of GDP at end-2015

By bne IntelliNews April 6, 2015

Turkey’s current account deficit will probably come in at 4% of GDP at the end 2015, said economy minister Namik Zeybekci on April 6, adding that Turkey does not have a current account deficit problem anymore.

The government forecasts a current account deficit of $46bn or 5.4% of GDP this year, down from $45.85bn or 5.7% of GDP in 2014.

Zeybekci also said on April 6 that he saw no need to revise the government’s 2015 growth target of 4%. If the first quarter growth comes in at 1.5%, the government’s 4% growth target in 2015 could be achieved, according to the minister. The measures that the government announced recently will support Turkey’s economic growth in the second half of the year, said Zeybekci. Turkey’s GDP growth slowed to 2.9% last year from 4.2% in 2013. Is Investment, a local brokerage house, said in a note on it expected a weak growth in the second quarter and if this weak performance continued Turkey’s GDP growth could be less than 2.5% this year.

The Prime Minister Ahmet Davutoglu on April 2 unveiled a series of measures to boost employment and investment. The government will provide social insurance premium support to employers and will prepare a bill that will allow SMEs to use their moveable as collateral. The measures package will cost TRY7.5bn (€2.7bn), but will not have an adverse impact on the budget, because the measures will lead to an increase in tax revenues and will spur economic growth, said Davutoglu.

GDP Growth Projections for Turkey  
(%) 2015
EBRD (Sep 2014) 3.0
European Commission (Feb 2015) 3.7
Turkish Government - Medium Term Programme for 2015-2017 (Oct 2014) 4.0
IMF (Feb 2014) 3.4
Turkish Central Bank survey (Dec 2014) 3.5
World Bank (Jan 2015) 3.5
OECD (Nov 2014) 3.2
Fitch (Dec 2014) 3.3
S&P (Mar 2015) 3.0
Source: ebrd, ec, dpt, imf, tcmb, oecd, world bank, s&p  

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