IMF chief: Growth of Turkish economy could exceed expectations
Posted by meb at October 5th, 2009
If Turkey continues to pursue sound economic policies, its economy could perform better than current estimates, International Monetary Fund (IMF) Managing Director Dominique Strauss-Kahn said on Sunday.
Strauss-Kahn, who is currently in İstanbul to attend the 2009 Annual Meetings of the World Bank Group and the International Monetary Fund, noted that he expected the Turkish economy to recover rapidly from the ongoing global economic crisis, saying that the Turkish economy has made great progress thanks to reforms previously implemented in the financial sector. As a member of the G-20, which forms the backbone of the global economy, he said, Turkey is not only one of the leading economies of the world, but also a dynamic member of the IMF.
According to the fund’s latest World Economic Outlook, released last week, Turkey’s economy is expected to grow 3.7 percent in 2010, after a global recession caused the country’s economy to contract an estimated 6.5 percent this year. The inflation rate in the country is expected to stand at 6.2 percent this year before increasing to 6.8 percent in 2010. The report estimated that Turkey’s current account deficit to gross domestic product (GDP) ratio would increase from 1.9 percent this year to 3.7 percent in 2010. Furthermore, Turkey’s quota in the IMF is expected to increase to more than 1 percent. Analysts note that the Turkish economy will be the fastest growing in Europe in 2010.
Speaking at a conference yesterday on the sidelines of the IMF-World Bank meetings, Professor Nouriel Roubini, a well-known economist, said macroeconomic and financial indicators show that the Turkish economy has been strong in the face of the crisis. He stated that a deal with the IMF would benefit Turkey in terms of the psychological influence it would have on investors and the market, even though there is no technical necessity for such a deal. Meanwhile multibillionaire investor George Soros stated that investments should continue in order to encourage recovery from the crisis.
source: Todays Zaman
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