Turkey: Govt foresees stronger economy with new program

The Turkish government forecast a healthier Turkish economy Tuesday in the announcement of the new medium-term economic program by Prime Minister Binali Yildirim.

“On our path to the 2023 targets, Turkey’s growth rate will never be lower than 5 percent,” Yildirim told a news conference.

“2017-19 annual growth will be at least 5 percent,” he said.

The program cuts the growth forecast for this year to 3.2 percent from 4.5 percent in the previous report, the prime minister said.

Yıldırım said that Turkey, since 2003, has remained committed to fiscal discipline. “It is an indispensable pillar of our economy,” Yildirim said.

Inflation will fall from the current annual rate of 7.5 percent, the prime minister said.

The inflation target is 6.5 percent for 2017 and 5 percent for 2018, according to the economic program, Yildirim said, noting that those numbers were calculated bearing in mind the worst-case scenarios.

“Turkey, with a growth rate twice the world average, will continue uninterrupted with structural reforms,” he added.

The government forecast that the budget deficit will dip below 1.9 percent in 2017, with the narrowing trend continuing in 2018.