Turkey Cuts 2014 Growth Forecast
World Economy

Turkey Cuts 2014 Growth Forecast

Turkey on Wednesday lowered its economic growth forecast for 2014 to 3.3 percent, blaming external factors including the chaos in neighbors Syria and Iraq and increased uncertainty in the global economy.
“Our growth forecast for 2014 has been revised from four percent to 3.3 percent,” Deputy Prime Minister Ali Babacan told a press conference as he unveiled his government’s economic program for 2015-2017, AFP reported.
“The growth target is a little lower than what we set at the beginning of this year,” he said.
“This is because exports with Russia, Ukraine and Iraq have decreased due to geo-political tensions ... Unfortunately, the situation in Iraq and Syria is not improving,” Babacan added.
He said the government forecast annual growth between 4 percent for 2015 and 5 percent for 2016-2017. He also revised upwards the inflation forecast for the whole of 2014 to between 7.6 to 9.4 percent.
“Our top priority is to fight with inflation,” he said. “We are aiming to bring down inflation to 6.3 percent in 2015 and five percent in 2016 and 2017,” Babacan said, adding that fiscal policy would continue to be tight until a significant improvement in the outlook for  inflation and growth.  
He said the government would continue to adopt structural reforms to steer the economy back to strong growth and improve the investment climate.    Reining in the ballooning current account deficit is the second priority, Babacan said, adding that his government would try to reduce the deficit to 5.2 percent by 2017 from 5.7 percent of the gross domestic product expected this year.
The government would have reached its original growth target if external shocks had not emerged, Babacan argued.
President Recep Tayyip Erdogan -- who ruled Turkey as premier for over a decade -- has been credited with turning around the Turkish economy, with GDP per capita almost doubling since he came to power.
But the chaos in neighbors Syria and Iraq where Islamic militants have seized swathes of territory and a pullback in liquidity by major central banks such as the US Federal Reserve, have hurt its growth more recently.
The Turkish economy sharply slowed to 2.1 percent growth in the second quarter, official data showed in September.
Analysts have already revised their forecasts downward, with the International Monetary Fund (IMF) cutting its 2014 growth forecast for the country to 2.3 percent.


Short URL : http://goo.gl/oVFtuA

You can also read ...

The lira has lost around 45% of its value against the US currency this year, largely over worries about Erdogan’s influence over the economy
Turkey’s central bank on Monday announced it was ready to take...
According to the new regulations, Cubans will be able to hold only one business license.
The Cuban government has said it wants more foreign investment...
Trump’s No-Win Trade War
President Donald Trump’s trade war may be fated to fail, for...
World Stocks, Currencies Plummet
World markets shuddered on Monday, as Turkey’s worsening...
Amado Boudou (R) attends his trial on corruption charges  in Buenos Aires on August 7.
Records kept in notebooks of the kinds used by schoolchildren...
(P)GCC Banks  Face Business Risks
A number of (Persian) Gulf Cooperation Council banks that have...
Singapore Warns Trade Tensions May Lower H2 Growth
Singapore authorities warned of slower economic growth in the...
China Printing Foreign Money
China is printing more foreign money as it seeks to expand its...