Deputy PM: Economy to grow 3 pct this year
The Turkish economy is expected to grow only 3 percent this year, a reduction from the government's target of 4 percent growth, Deputy Prime Minister Cevdet Yılmaz, responsible for the economy, told Anadolu Agency on Friday.
The target set by the government's Medium-Term Economic Program may be cut 1 percent due to volatility in global markets and political uncertainty ahead of the Nov. 1 early elections, Yılmaz said. "Indicators showed that Turkey grew 3.1 percent in the first six months of the year. I can say that annual growth at the end of the year may reach 3 percent. But, to give an exact number, we should expect the announcement of the revised Medium-Term Economic Program," Yılmaz said. "And in such a challenging global economy, growing 3 percent is a significant success," he added. In the second quarter of 2015, Turkey was the third fastest-growing country in Europe with 3.8 percent growth year-on-year after Malta and the Czech Republic, according to figures from Eurostat and the Turkish Statistical Institute.
Yılmaz pointed out that despite global volatility and uncertainty in world markets and geopolitical risk around Turkey in the midst of recent terrorist activities within its borders, Turkey managed to show economic resilience. "Our second quarter growth rate was 3.8 percent. The rate for the first half was 3.1 percent. When you take into account all [negative] factors, this is not a performance to look down on. Despite volatility in financial markets, the real economy proceeds on its way," he said.
Regarding the high current account deficit, which is one of the Turkish economy's persistent problems, Yılmaz said that Turkey had a current account deficit near 10 percent of GDP just a few years back, but it has now been cut to 5.5 percent of gross domestic product (GDP). "This year we expect the current account deficit to come down below $40 billion. But we will assess this target once more in our new Medium-Term Program," Yılmaz said.
The target set by the government's Medium-Term Economic Program may be cut 1 percent due to volatility in global markets and political uncertainty ahead of the Nov. 1 early elections, Yılmaz said. "Indicators showed that Turkey grew 3.1 percent in the first six months of the year. I can say that annual growth at the end of the year may reach 3 percent. But, to give an exact number, we should expect the announcement of the revised Medium-Term Economic Program," Yılmaz said. "And in such a challenging global economy, growing 3 percent is a significant success," he added. In the second quarter of 2015, Turkey was the third fastest-growing country in Europe with 3.8 percent growth year-on-year after Malta and the Czech Republic, according to figures from Eurostat and the Turkish Statistical Institute.
Yılmaz pointed out that despite global volatility and uncertainty in world markets and geopolitical risk around Turkey in the midst of recent terrorist activities within its borders, Turkey managed to show economic resilience. "Our second quarter growth rate was 3.8 percent. The rate for the first half was 3.1 percent. When you take into account all [negative] factors, this is not a performance to look down on. Despite volatility in financial markets, the real economy proceeds on its way," he said.
Regarding the high current account deficit, which is one of the Turkish economy's persistent problems, Yılmaz said that Turkey had a current account deficit near 10 percent of GDP just a few years back, but it has now been cut to 5.5 percent of gross domestic product (GDP). "This year we expect the current account deficit to come down below $40 billion. But we will assess this target once more in our new Medium-Term Program," Yılmaz said.