Turkish Finance Minister: 4% GDP growth target achievable for 2013.
Turkish Finance Minister Mehmet Simsek said that the government’s GDP growth target of 4% for 2013 is achievable, if the current recession in Europe does not deepen, as declining borrowing costs fuel domestic demand. Looser monetary policy neutralises tightened fiscal policy, Simsek added.
The government’s Medium Term Program 2013-2015 goals for a greater soundness, with the central government budget deficit/GDP being 1.8％ and the public debt/GDP being 31.0% in 2015, is highly attainable, the rating agency JCR commented last week when it upgraded Turkey’s ratings to the investment grade.
Earlier this month, the Central Bank cut the benchmark rates to spur growth and prevent an appreciation of the local currency amid strong capital inflows. The Bank cut its main policy rate (one-week repo rate) by 50bps to 4.5%. It also lowered the overnight borrowing and lending rates by 50bps to 3.5% from 4% and to 6.5% from 7%, respectively.
| Turkey | ||
| (%) | 2013 | 2014 |
| European Commision Forecasts (May 2013) | ||
| GDP growth | 3.2 | 4 |
| Annual Inflation | 6.6 | 5.6 |
| Current Account Deficit / GDP | -6.8 | -7.2 |
| Unemployment | 8.6 | 8.8 |
| Government's Medium-Term Programme (October 2012) | ||
| GDP growth | 4 | 5 |
| Annual Inflation | 5.3 | 5 |
| Current Account Deficit / GDP | -7.1 | -6.9 |
| Unemployment | 8.9 | 8.8 |
| IMF World Economic Outlook (April 2013) | ||
| GDP growth | 3.4 | 3.7 |
| Annual Inflation | 6.6 | 5.3 |
| Current Account Deficit / GDP | -6.8 | -7.3 |
| Unemployment | 9.4 | 9.5 |
| Source: ec, dpt, imf | ||
Related Articles
Professor says climate change putting Turkey at risk of becoming a “disease-prone desert”
Turkey is at risk of becoming a “disease-prone desert” with water resources and forests disappearing, Hurriyet Daily News reported Professor Mikdat Kadioglu from Istanbul Technical University’s ... more
Turkey’s lira and shares start moving sideways as significance of early elections is debated
The strongly positive initial reaction given by markets to April 18’s surprise announcement of snap elections in ... more
Turkish lira’s chronic weakness credit negative for Turkey’s sovereign rating says Moody’s
The chronic weakness of the Turkish lira (TRY) is credit negative for Turkey’s sovereign debt rating and poses ... more
Most Read
-
Europe pushes back against US sanctions on Russia
2 days ago
-
Romanian developers get in the game
6 days ago
-
Putin and Trump trying to walk back Syria strike and sanctions tensions
7 days ago
-
What’s the cost of US sanctions on Russia?
8 days ago
-
Is Armenia facing a colour revolution? Popular protests on the rise in Emerging Europe
2 days ago
-
Fears raised of US conditioning F-35s sale on Turkey cancelling S-400 deal with Russia
28 days ago
-
Europe pushes back against US sanctions on Russia
2 days ago
-
Romanian developers get in the game
6 days ago
-
COMMENT: Whisper it – ‘Erdonomics’ could be driving Turkey to a meltdown
15 days ago
-
Putin and Trump trying to walk back Syria strike and sanctions tensions
7 days ago
Selected articles from our premium news/views
wire
IntelliNews
Pro
IntelliNews- Second rating blow for Warsaw-listed debt recovery firm GetBack
- Romania, Bulgaria seek China’s support for third Danube bridge
- Slovakia battling Romania for Chinese electric carmaker Zhi Dou's plant
- Romania’s government insists anti-corruption head Kovesi must go
- Russia offers Tajikistan observer status within EEU trade bloc
- More from IntelliNews Pro