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Turkey keen on implementing economic reforms

Turkey keen on implementing economic reforms

ANKARA: Turkey is continuing its efforts to further implement structural economic reforms, Deputy Prime Minister Nurettin Canikli said on Wednesday. “We will continue to implement reforms. As per instructions of our president, we have a 180-day action plan and efforts are underway to implement it,” Canikli said. Canikli said Turkey would witness a single-digit inflation rate by the end of 2017. “Amid high economic growth in Turkey, decline in inflation is very valuable development,” he said.

The country’s inflation rate decreased to 10.90 percent year-on-year in June from 11.72 percent in May, data from the Turkish Statistics Institute (TurkStat) showed on July 3. Canikli said Turkey would surpass the target of 4.4 percent growth rate in its medium-term Program. He expressed hope that the government would maintain the country’s strong growth. “Turkey’s economy must grow continuously in order to increase employment and national income,” he added. He pointed out the needed contributions of all economic actors to the country’s strong growth. “The banks are valuable as long as they support production in the country,” Canikli said. Turkey’s economy grew 5 percent in the first quarter of 2017, according to the Turkish Statistical Institute’s data released on June 12. Last year, Turkey’s economy grew 2.9 percent, down from 6.1 percent in 2015 and 5.2 percent in 2014.

Turkish President Recep Tayyip Erdogan wanted all ministers to prepare a 180-day action plan by the end of 2017 to be able to implement them by the 2019 elections. Commenting also on high interest rates of banks, Canikli pointed out that deposit interests exceeded 15 percent and called for decreasing interest rates. “Charging high interest on deposits affect credit cost, accordingly production, real sector and firms. This is not a realistic interest policy, it cannot be sustained and it is not correct as a method,” he explained. Raising interest rates do not increase deposits, Canikli stated and added: “There is a deception and fallacy.” Canikli underlined that interest rate competition of banks should be prevented.