Turkish economy to sustain growth with reforms

Published 24.07.2017 00:00

Turkey's growth figures will be higher than predicted at the end of the year as the government looks to sustain it through some upcoming reforms, said Cevdet Yılmaz, the AK Party deputy chairman of Economic Affairs.

Yılmaz noted that the July 15 coup attempt caused an estimated TL 60 billion ($16.97 billion) in short-term damages. "I think the coup might have a positive effect in the long run. As a result of the incident, Turkey could get rid of its burdens, and it is now in the process of clearing its institutions off terrorist organization members. The country is actually walking towards a more secure democratic and economic future."

Speaking to journalists, the minister pointed out that Turkey, exceeding expectations, will post a growth rate of around 5 percent at the end of the year.

Stressing that political uncertainties are fueling economic uncertainty, Yılmaz said, "With the referendum on April 16, we entered an atmosphere of enhanced political predictability. We, therefore, expect it to make a positive contribution to our economy."

Noting that 2017 is more or less evident, Yılmaz said for sustainable growth political stability and a confidence environment is very important, adding that certain reforms should be made and decisions were made.

"In this regard, our government expresses its determination at every opportunity. A roadmap is being prepared. With the steps to be taken after its announcement, we will have a solid and scheduled framework. Together with these, Turkey will achieve growth and sustain it," Yılmaz added.

Elaborating on the government's economic reforms, Yılmaz said that they were working on projects on simplifying taxes, improving the investment climate and reducing bureaucracy. He also underlined that employment, which has recently been maintaining a good upward trend, was also very important.

"Certain steps were taken to reduce inflation, and a few food committee decisions were passed. Now we are experiencing a downward trend in inflation. We will probably see it come down to single digit in the near future," said Yılmaz.

He also emphasized that despite the coup attempt, Turkey entered the process of rapid recovery and re-growth.

Yılmaz pointing out last year's 2.9 percent growth said, "If it was not for the coup, what would be Turkey's growth rate? We grew by 4.5 percent in the first quarter and by 5.3 percent in the second quarter. A figure close to 5 percent. Considering that a similar course would be followed in the second half, growth would be close to 5 percent. However, the realization was 2.90 percent, a decrease of 2.1 percent."

He recalled that Turkey reached $860 billion in national income last year which amounted to a nearly $17 billion loss.

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