Turkey has defeated attacks on economy: Minister

BURSA

The Turkish government has defeated economic attacks against the country’s economy in only two months, thanks to a series of effective coordination mechanisms, a top economy official has said, adding that the economy is in “much better condition” now than it was in August or September.

In a speech in the northwestern province of Bursa on Nov. 8, Treasury and Finance Minister Berat Albayrak said the fight against inflation would also remain the main priority in the short run and the government would give a boost to an intensive reform agenda in the next five years.

“Although Turkey faced a tremendously serious operation against its currency, interest rates and inflation in August, we have achieved to defeat these economic attacks in just two months,” the minister said during an event, which was organized by the Bursa Chamber of Commerce and Industry (BTSO).

One of the main reasons behind how soon the problems were solved was a fast decision making and coordination mechanism that was brought by the presidential system, according to Albayrak.

Turkey is doing better now than it did in August or September in terms of parities, CDS or loan rates, he also said, adding that the measures, which were recently taken by the government, would lead to much better results soon.

“Since we have come to power, we have focused on two main areas. The fight against inflation has been our main priority since the very beginning. In the recent period, some manipulative price hikes, surpassing any spillover impact of the loss in the [Turkish] Lira’s value, have made our plan to combat inflation much more significant. The bad days in this area are over,” the minister said, adding that the positive impacts of the government measures on pricing behaviors would be seen in November and December.

In the next five years, the government will focus on fulfilling a series of key structural reforms in a bid to make Turkey one of the strongest production economies of the world, he also said.

Turkey’s annual inflation surged to 25 percent in October, official data showed on Nov. 5, hitting its highest in 15 years.

The government has vowed the worst was over the inflation rate, noting that the rate would ease in the upcoming period.

Albayrak recently announced a “full-fledged fight” against inflation in October, calling on all companies to offer 10 percent discounts on items impacting inflation until year-end.

Later on, he also announced a consumer tax cut to furniture, white goods and motor vehicles, which economists say will trim year-end inflation by around 1 percent.