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Turkey reveals $34bn plan to boost economy

Turkey reveals $34bn plan to boost economy

ANKARA: The Turkish government has revealed details of a $34 billion investment package aimed at creating jobs and reducing the country’s rising deficit, according to Hurriyet Daily News.

The project-based plan will see some 19 companies granted funds to expand their businesses, which it is estimated will directly generate some 35,000 jobs, and indirectly aid in the creation of a further 134,000 positions.

Turkey’s deficit is one of the highest in the international G20 group, making it reliant on domestic and foreign investment. Erdogan expressed his desire to cut interest rates in an effort to attract greater financing to the country.

Turkey’s economy has witnessed rapid growth rates in recent years, with current figures surpassing that of China and India, as it ended 2017 with a rate of 7.4 per cent, according to the Turkish Statistical Institute.

However, many have expressed concern that the economy is overheating, as the Turkish lira has been consistently falling to record lows against the US dollar, euro and British pound. The lira is the fourth-worst performer so far this year among more than 20 emerging market currencies.

The Turkish currency has been under pressure since early March after credit agency Moody’s cut Turkey’s rating, due to the country’s widening current account deficit. Investors are also concerned at high inflation rates, which stand at over ten per cent, due to the ongoing Syrian conflict on its borders.