July slowdown only temporary says Başçı

ANKARA - Anatolia News Agency

Central Bank Governor Erdem Başçı is seen here. AA photo

The Turkish economy slowed a bit according to the July data, the Central Bank governor has said, adding that an 8-9 percent growth rate for 2012 or 2013 would not be possible anywhere, including China.

Speaking to reporters at the Economy Reporters Foundation (EMD) roundtable over the weekend, Erdem Başçı said that until July, the economy had been going strong, but the July economic figures were a bit weaker. He attributed this to a variety of factors.

He said the banking sector had been unable to adjust to a requirement making spouses co-guarantors for commercial loans, as well as a recent increase in unpaid bad checks.

The governor added that the month of Ramadan could also have played a role, and the slowdown in July could therefore be temporary.

The signals for August look more promising and exports look like they are picking up, Başçı added. Therefore, he said it was too preamture for the Central Bank to intervene.

“From now on if there are downside risks, these will come from abroad, and if at that point we have to take precautions as the Central Bank, then we will,” he said.

Başçı said that the Central Bank’s current priority was financial sustainability, which would contribute to Turkey’s long term growth prospects.