Mehmet Simsek says Turkey’s growth rate slowed down in recent years but recovered rapidly. Turkish Deputy Prime Minister Mehmet Simsek said that the country’s economic growth rate for this year will be between 5 to 6 percent. Simsek said Turkey’s economy had shown a steady growth despite domestic and international shocks.
“The Turkish economy grew by 5.7 percent on average between 2002-2016 despite a number of massive shocks such as, the global crisis, the fall in domestic demand due to debt crisis in Europe, the chaos in the Middle East, terrorism, and the coup attempt,” Simsek said.
He said that Turkey’s growth rate slowed down in recent years but it recovered rapidly, owing to the right decisions taken by the government.
“Investments started to recover and foreign demand is strong,” Simsek said, adding that employment generated doubled compared to the average in the past years.
He said for the short term, Turkey had to apply a tight monetary policy in order to drop the inflation rate and limit loss in the Turkish lira.
He added that structural reforms were the only way to overcome issues, such as reducing the current account deficit, and financing growth and investment with domestic sources in medium term.
“Our purpose is to reduce the foreign dependency rate,” Simsek said.
He said that once the reforms become successful external fragility would reduce, and economic growth will become inclusive and sustainable.
Simsek added that two important developing countries — Russia and Brazil — were unable to grow although they had not encountered even one-third of the problems Turkey had.
“They [Russia and Brazil] do not have Turkey’s dynamism. There is a great spirit of entrepreneurship and financial space in Turkey. We will enhance it with reforms.”
Turkish ministers hail economic rise
Economy Minister Nihat Zeybekci said that, according to current indicators and analysis, third quarter growth would break the 7 percent barrier. “As the government, we focused on production, investment and exports after April with the strengthening of political stability,” he said in a statement. Turkey performed better than EU countries, which showed an average 2.4 percent economic growth, he said. Eurozone economies had shown 2.3 percent growth while Organization for Economic Cooperation and Development (OECD) states showed 2.4 percent.
The new growth figures run contrary to forecasts by international institutions such as the International Monetary Fund, the World Bank and the OECD, which predicted growth of between 2.5 percent and 3.5 percent.
Government support and incentives were reflected in the second-quarter growth rate, Finance Minister Naci Agbal said, while rapid economic reform, strong confidence and positive international developments would continue to support the recovery.
Development Minister Lutfi Elvan said improving domestic and global conditions would allow Turkey to realize its potential. “Within this scope, we will continue to astonish international institutions with our third quarter growth rate, which will exceed the first and second quarters’ rates,” he said. “Technological and methodological innovations are rapidly transforming economic processes on a global scale. Turkey will not fall behind this change and transformation.”