Turkish Treasury official says growth momentum continues in Q1.

By bne IntelliNews May 8, 2014

Several indicators, including PMI, industrial output, capacity utilisation and confidence indexes suggest that growth momentum has continued into the first quarter of the year, Treasury Undersecretary Ibrahim Canakci said on Wednesday.

Deputy PM Ali Babacan also sounded optimistic on growth, saying that the government’s GDP growth forecast of 4% for 2014 is still realistic. The government will monitor developments to see if there is need to revise the growth forecast, Babacan said, adding that there are some downside risks to growth. The Turkish economy expanded 4% last year. OECD this week cuts its GDP growth forecast for Turkey for 2014 to 2.8% from a previous 3.8% and it slashed the 2015 forecast to 4% from a previous 4.1%. The IMF expects the Turkish economy to growth 2.3% this year, down from the Fund’s previous estimate of 3.5%.

Going back to the Treasury Undersecretary comments, Canakci also said that higher interest rates and depreciation of TRY would not have a significant impact on debt servicing. The domestic debt rollover ratio is expected to stay slightly below the Treasury’s target, Canakci added. The Treasury targets TRY 134.6bn (EUR 46.45bn) domestic and TRY 14.8bn external borrowing this year and its debt rollover ratio target is 86%.

Related Articles

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

Turkey's Erdogan turns fire on US ambassador in diplomatic spat over arrest

Turkish President Recep Tayyip Erdogan has turned his fire on the US ambassador to Turkey for the ... more

Dismiss