Economic targets will be overshot, says Minister Albayrak

ISTANBUL

Growth and employment target set out in the new economic program will be overshot as the economy will show a stronger performance in the second half of the year, Turkish Finance and Treasury Minister Berat Albayrak said on July 5, addressing the 7th Ordinary General Assembly of the Association of Financial Leasing in Istanbul.

He noted that the rebalancing in the economy has been underway and said: “Turkey will benefit from the four-year period ahead to prepare a basis to attain its dynamic structure.”

The minister said economic activity will gain further traction in the second of the year.

In its new economic program, released in September, the government forecast a GDP growth of 2.3 percent for this year. GDP expansion will accelerate to 3.5 percent in 2020, according to government estimates.

The program foresees that the country’s jobless rate will be 12.1 percent this year and will declined to 11.9 in 2020.

Albayrak also reiterated that inflation will continue to decline in the period ahead and converge to single-digit figures.

“We can say that inflation will be below the rate seen in the economic program at the end of this year,” he added.

The government’s consumer price inflation forecast for 2019 is 15.9 percent.

According to the latest data, Turkey’s annual inflation rate dropped to 15.72 percent in June from 18.71 percent in May.

Consumer prices inched up 0.03 percent on a monthly basis, below the market consensus forecast for a 0.03 percent increase.

“Turkey has gained significant experiences to fight against foreign currency attacks in the last period,” Albayrak said.

He recalled that Turkey’s current account deficit dropped to $8.6 billion in April, compared to the historical high with $57.9 billion in May 2018.

“Turkey will post a current surplus in June for the first time since the rule of Justice and Development Party (AKP) for nearly 17 years,” he said.