Turkish Finance Minister: 4% GDP growth target achievable for 2013.

By bne IntelliNews May 27, 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.

(%) 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

Poland supports Turkey’s near-dead EU membership bid

Turkish President Recep Tayyip Erdogan received a warm welcome from his Polish peer Andrzej Duda on October 17, as Warsaw said it supported Ankara’s formally ongoing bid to become a member of the ... more

Poland claims there will be “no taboo” in talks with Erdogan

Poland will skip no touchy topics in talks with President Recep Tayyip Erdogan, visiting Warsaw on October 17, the office of President Andrzej Duda said ahead of the visit by the Turkish leader, ... more

Erdogan says he plans talks with lenders on cutting Turkish interest rates

Turkey's President Recep Tayyip Erdogan said on October 13 that he plans to hold talks with both public and private lenders on how to lower interest rates. He did not say, however, when those ... more