Turkey's Economy Minister: inflation is the priority for medium term


Turkey's Deputy PM in charge of Economy Ali Babacan announced Turkey's Medium Term Program (MTP) concerning the period of 2015-2017 on Wednesday in a press statement held in the new prime ministry building, attended by Finance Minister Mehmet Şimşek, Labor and Social Security Minister Faruk Çelik, Customs and Commerce Minister Nurettin Canikli and Development Minister Cevdet Yılmaz.Deputy PM Babacan stated that the first priority of the MTP is inflation, second is current account deficit and third is structural reforms.Tight fiscal policy will be pursued in order to reach our (Turkey's) goals, and structural reforms are important to increase our potential growth, Babacan said, announcing the GDP growth rate expectations for 2015 as 4 percent and 2016-17 for 5 percent.He announced that inflation rate is expected as 9.4 percent for 2014, for 2015 as 6.3 percent and will be reduced to 5 percent by 2017.As American economy recovers, dollar will continue increasing its strength, and U.S Federal Reserves' contractionary policies might have negative effects on Turkey's economy, Babacan said.GDP growth rate is expected as 3.3 percent for 2014, Babacan said, pointing out that this rate will be one of the highest in Europe, as well as a balanced one.Babacan reminded that this growth realized in a very tough environment, listing Gezi protests, Fed's policies, crises in Ukraine, Iraq and Syria, 17 and 25 December operations as primary obstacles.Current account deficit is expected as 5.7 percent for 2014, and is to decrease to 5.2 percent as of 2017, Babacan stated.Macro policies were efficient in increasing savings and reducing consumer credit and credit card usage, and 15 percent domestic savings is expected for 2017 due to these precautions, Babacan said.Overall 9.6 percent unemployment is estimated for 2014, and will decrease to 9.1 percent by 2017, Babacan stated. Women's participation in employment has increased, he added, while overall participation rate has also increased.National income per capita at the end of the 2014 is estimated as $10,537 and $12,229 for 2017.