PM says there is ‘nothing to worry about’ in Turkish economy

Deniz Zeyrek - ANKARA

AA Photo

Turkish Prime Minister Ahmet Davutoğlu said the rise in the U.S. dollar’s value is reflexive, and not a signal of any structural or permanent economic crisis in Turkey, during a meeting with a group of Ankara correspondents on Aug. 19. 

“There is nothing to worry [about] here,” he said, adding very few countries could experience four consecutive elections with such low economic damage as Turkey did. 

Davutoğlu noted all post-election processes were quite transparent and in line with the rule of law. 

“In this process, there was no interruption in our budget discipline, banking system or monetary policy. We have taken all measures for our lower incomers not to be affected from the rise in inflation rates or the slowdown in the economic growth. Our investments are in progress. There has not so far been any negative trend in Turkey’s rating despite all risks and the fight against terrorism acts,” he said. 

Davutoğlu said he held meetings with economy ministers, Central Bank head Erdem Başçı and Deputy Prime Minister Ali Babacan after a cabinet meeting last week. 

“Along with the economy ministers, we made a series of decisions about how to control meat prices and what measures should be taken to overcome the rise in prices. I also held a meeting with Başçı. And I took a quite detailed briefing from Deputy PM Ali Babacan about the latest developments in the world economy,” he said. 

Davutoğlu noted there was a general fluctuation affecting many other currencies across the world. 

“We have seen reflective reactions in the markets. We cannot talk about any structural and permanent crisis… If I was quite concerned about the parities, I would have made our meeting with the head of the Nationalist Movement Party [MHP], Devlet Bahçeli, on a Friday, when the stock markets are closed, rather than last Monday. As we have complete confidence in the strength of our economy, we can make such meetings anytime,” he said. 

The MHP rejected a coalition with the Justice and Development Party (AKP) and refused to support a minority government on Aug. 17. 

The breakdown in talks between the nationalists and Davutoğlu’s AKP raises the likelihood of a fractious multi-party interim government, more unwelcome news for jittery investors who have sent the Turkish Lira to a series of record lows.