It is clear that the government is worried with the economic prospects of Turkey in 2015 due to a string of factors and is thus taking steps today to face the challenges of the immediate future. This is commendable and gives the right messages to the international community that Turkey is run by level-headed people who will continue their well-disciplined approach.
Turkey has rightfully put a lot emphasis on social programs for the needy as well as for women, children and the elderly, which means the government has to find an extra TL 80 billion ($34.4 billion) every year to keep up the good work.
The other important factor is that we do not have enough domestic savings, meaning we do not have the money to finance our own projects and thus need foreign capital injections, but with the fall in oil prices that capital injection is bound to slow down because the money comes from revenues of oil-rich countries.
Added to all this is shrinking world markets that will, relatively, slow down our exports and thus dampen our external revenues. Also, there is the prospects of a possible fall in tourism revenue as fewer Russians may come to Turkey in light of the massive economic crisis being experienced in their country. The fall in Turkey's energy bill with the drop in oil and natural gas prices is positive, yet the fact that the revenues of those oil suppliers who import from us is also falling, which plays up on our exports.
The world has been struggling with economic difficulties since 2008, and Turkey has managed to sail through the stormy waters with greater ease thanks to the reforms it initiated in the financial sector and the well-disciplined approach of the government led by Recep Tayyip Erdoğan.
All the praise should go to the economic masterminds of Turkey led by Deputy Prime Minister Ali Babacan, Finance Minister Mehmet Şimşek and the Turkish Central Bank.
However, now we are facing a new situation and we can see the government taking preemptive steps to fend of the potential dangers that we will be facing in 2015.
The belt tightening measures announced by Prime Minister Ahmet Davutoğlu may not yield immediate results but the fact that the government is considering strict measures that will hurt the pockets of the rich will no doubt show that those running Turkey mean business and thus confidence in the Turkish economy will be enhanced.
The government is pushing to increase domestic savings and also increase the burden on the rich of Turkey, who until now have enjoyed a boom period. Now is payback time,
What is sad in this picture is what will we do when Babacan steps down next year as he cannot be elected again for Parliament due to Justice and Development Party (AK Party) rules Isn't it a great shame to lose such a talent at such a young age?