Turkey to maintain strong growth in 2007
Posted by meb at January 25th, 2007
Turkish economy is one of the most rapidly growing economies in the world and will only continue to boom according to Ulrich Zachau, World Bank regional director for Turkey in Europe.
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”I expect a strong economical growth in 2007 as well,” said Zachau, adding that Turkey’s first priority should be increasing both the quality and quantity of employment. Zachau also stated that 2001 was a year of significant improvement for the nation.
Zachau said that strong monetary discipline and tight financial policies with positive economic surroundings work to trim down inflation, saying: “The level Turkey’s economy has reached is quite impressive, however, as any newly emerging economy, there is much work to be done in carrying forward the infrastructural changes and continue modernization.”
Zachau predicted this year’s elections would affect Turkey’s macroeconomic balance negatively. “Trade marketers are closely following the elections and trying to foresee Turkey’s future political path–certainly there will be positive and negative economic risks in pre-election campaigns and post-elections periods. In a country such as Turkey, where financial stability is an issue for investors, it is expected that there will be risks,” said Zachau.
Zachau stressed that it is important to put the social security reform into effect as soon as possible as it is of vital importance to the nation emphasizing that, ” Lately international ratings institutions have showed interest on the subject of the social security reform for Turkey.” adding that “establishing a proper security system sustainable by financial policies is an important goal.”
Summarizing the banking sector in the nation, Zachau said it is in a strong upturn, noting, “Banks are after higher capitalization and reasonable returns. Weak banks have been ousted and foreign banks started entering the system.”
Zachau specified that while reducing the inflation ratio and real interest rate, the public finance sector has also gained significant progress in the restructuring, improving employment conditions, and providing stability thereby enabling us to foresee the economic future clearly. Zachau, pointing out that, even though trust in the market is established, there are still economic factors needing consideration, saying, “For example, the change in the risk expectations of international investors can affect every booming market including Turkey’s.” Zachau emphasized that the primary surplus and the social security reform are key factors for those planning on investing in Turkey.
Noting that the real goal of economic policies, that includes the existing reform procedure, is people’s well-being, Zachau expressed that he wants the World Bank cooperating with Turkey to improve life standards for the poor and less-fortunate. Zachau, emphasizing that the sustainable growth of economy is essential for reducing the poverty, also said that he was touched while visiting the cities of Eskişehir and Edirne, which are supported by projects of the World Bank.
source: www.todayszaman.com
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