Turkey needs rapid growth, says Başçı

ISTANBUL - Hürriyet Daily News

Turkish Central Bank Gov Erdem Başçı says the country’s income per capita may even exceed official targets. Hürriyet photo

Turkey needs to pull its growth rate up to 6 or 7 percent to reach its 2023 target of $25,000 per capita income, according to Central Bank Gov. Erdem Başçı.

If this is not the case then the country needs to reform its labor market Başçı said yesterday in a panel session titled “Private Sector in an Age of Crisis,” held as part of the TOBB International business forum in Istanbul.

“Reducing inflation to single digits removed the most important obstacle to Turkish growth prospects. The 2023 target of $25,000 per capita income is achievable provided that price stability and financial stability are maintained in the interim period. To the extent that the productivity enhancing structural reform agenda of the government is implemented, per capita income can well exceed the above-mentioned target,” Başçı said.

Turkey-South Korea comparison

The business forum proceeded with the commencement of the second panel yesterday, titled “Private Sector in an Age of Crises: Between Europe and the Middle East.”

With moderation by Işınsu Kestelli from the İzmir Commodity Exchange, Alessandro Barberis from Eurochambers, Jean-Guy Carrier from the ICC, Salah Kamil from Islam CCIA, and Başçı took the floor.
Başçı gave a presentation on the basis comparison of Turkey with South Korea. He said Korea grew rapidly between 1984 and 1996, and Turkey could experience a similar growth spurt if it achieves the necessary reforms.

With the start of 2013, a 10-years countdown to Turkey’s 2023 goals will begin.

Başçı said Turkey can achieve the same success as Korea, but efficient use must be made of existing talent. Turkey ranked 46th out of 146 countries on the Global Competitiveness Index, he said, while Korea was 19th.

Turkey also advanced one place on a list of the world’s balanced budgets in the last six years, to 55th, up from 112th.