World Bank: Turkey can attract investment with reforms

ANKARA - Anadolu Agency

By implementing more structural reforms Turkey can send a clear signal to lure more foreign funding in the form of direct investment (FDI), Johannes Zutt, Turkey country director for the World Bank, told state-run Anadolu Agency on Dec. 24.

“The current macroeconomic environment and projected external conditions [rising energy prices and monetary tightening in the U.S. and Europe] will require monetary and fiscal discipline,” Zutt said.

Zutt said sound macroeconomic policies need to be accompanied by deeper structural reforms to ensure a more sustainable economic growth over the medium term for Turkey.

According to Zutt, key structural reforms include improving investment climate, deepening financial markets, strengthening public expenditure management, completing overdue labor market reforms and improving the quality of the education system.

“These could be critical to help improve the resilience of the economy and help private investment to pick up in the medium term. Rigorous progress in advancing structural reforms will be key to restoring investor confidence, mitigating vulnerabilities, enhancing productivity and supporting growth,” he said.

The country’s new growth model should rely on stronger private investment, increases in firm level productivity, and better resource allocation,