Turkey will see single-digit inflation by end of 2017: Deputy PM

LONDON – Anadolu Agency

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Turkey will see a single-digit inflation rate by the end of 2017, Deputy Prime Minister Nurettin Canikli stated on May 3, amid alarming recent rises in inflation.        

“We will see this [drop] not only in inflation but also in unemployment at the end of the year,” Canikli told reporters in London, where he was holding a series of meetings.        

Turkey’s inflation rate increased 11.87 percent year-on-year in April from 11.29 percent in March, data from the Turkish Statistics Institute (TÜİK) showed on May 3. Annual consumer price inflation was also at the highest level since October 2008.

Saying he had met investors and those interested in doing business in Turkey, Canikli said direct investment had gathered pace in recent years.        

“Turkey, which failed to attract an average direct investment of $1 billion before 2002, has become a country that attracted $12 billion as of the end of 2016,” Canikli said.        

He also said direct investment, which had reached $22 billion in some years, naturally fell in recent times due to geopolitical and regional risks, but insisted that Turkey was still a country with great potential to attract business.

The deputy prime minister said developments in Turkey and in the region could be presented differently to foreign markets. He said direct contact was being made with investors to inform them of the situation in Turkey.        

Speaking about Turkey’s shift to an executive presidential system, Canikli said markets had welcomed the continuity of stability.        

“The rising value of the Turkish Lira and the historic records seen in Borsa Istanbul are indicators showing that the presidential system of government is the correct regulation for Turkey and the economy,” he added.

He was also critical of credit rating agencies, describing them as “far from rational” and claiming that their recent decisions had “political aims.”        

Canikli said Turkey had registered growth of 3.5 percent in the fourth quarter but credit ratings had not been renewed.        

He added that all indicators were pointing to growth in 2017 and the state’s priority in the near term was to lower interest rates as they have a significant effect on inflation.