Speaking to Anadolu Agency (AA) in New York, the Deputy Prime Minister Ali Babacan said that a $10 decrease in crude oil prices decreased inflation rates by 0.5 points. He also said that, if the oil prices are around $72 instead of $102, then the inflation rate in Turkey will be 1.5 points less.
Babacan, who is visiting New York to meet with representatives from the finance sector, also underlined that any drop in crude oil prices also has a positive effect on Turkey's current account deficit. "With such decreases experienced in the last few months, our current account deficit has decreased by $4.4 billion," said Babacan.
"Next year, the current account deficit will also decrease by 1.5 points according to our calculations. A $10 decrease also has a positive effect on growth around 0.3 percent; therefore if prices fall down to $72 (from $102), our growth rate will increase by 0.9 percent," said Babacan.
He further noted that even if the crude oil prices decrease, all economy politics will continue without taking this decrease into consideration.
"We will continue our budgetary discipline, our savings program, and our reform efforts as if oil prices have not decreased," added Babacan.
Stating that it is too early to say that the current account deficit is no longer a risk factor, Babacan underlined the fact that the crude oil prices may increase at any time and that structural reforms are the main factors in decreasing the current account deficit.
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