Largest problem in world economy is credibility deficit, says Deputy PM Babacan

ANKARA/JEDDAH - Anadolu Agency

The global economy’s main problem is the lack of credibility, rather than budget deficits, says Deputy PM Babacan. DHA Photo.

The global economy’s largest problem is a credibility gap, rather than budget deficits, said Deputy Prime Minister Ali Babacan at the first B-20 meeting abroad during Turkey’s G-20 presidency.

“The more rapidly we close this credibility gap, the faster we all build confidence. This will bring all of us robust and sustainable growth across the world,” he said on Feb. 22.

The B-20 Regional Consultancy Forum was held for the first time abroad during Turkey’s G-20 presidency, under the presidency of Babacan. The meeting was hosted by the head of the Union of Chambers and Commodity Exchanges of Turkey (TOBB) and B-20 Turkey, Rifat Hisarcıklıoğlu.

Babacan praised the importance of regional organizations in boosting economic relations, including the Federation of Gulf Cooperation Council Chambers (FGCCC), which inked a cooperation deal with TOBB and held the first meeting with its Turkish counterparts in Istanbul in February 2012.

Babacan noted Turkey wants to revive the free trade deal negotiations with the FGCCC again.

Turkey’s trade volume reached $16 billion with the federation members, and their investments in Turkey have exceeded $10 billion, Babacan said.

“Trade ties are unfortunately seen less in North Africa and the Middle East when compared to what is happening in Latin America or the Far East… As long as our region’s players could develop more economic ties with each other, this will also be good for our region’s political stability,” Babacan said.