Turkey’s Current Account Deficit Projected to Rise to 8,9 Percent by 2012
Although the current administration paints a very optimistic picture about the Turkish economy, experts need to draw attention to some basic indications to shows the actual situation is not exactly so. The PM has been referrring to the increase in GDP to approx. USD 10,000. However, this increase in wealth although supposed to show in everyday life standards of people and the economical situation of small businesses especially can hardly be observed by observative eyes.
Among many measures taken by the government to keep the boat right on track, the government is more than creative to come up with interesting alternatives such as “introducing regional minimum wages as a way to achieve more balanced growth”.
In a report released yesterday, the Organization for Economic Co-operation and Development (OECD) did not deny its support to the government saying “Authorities should closely watch if the new policy of raising bank reserve requirements without increasing policy interest rates delivers the intended slowdown in credit and economic activity, and be ready to turn to other measures if needed.”
“Fiscal policy should remain tight, possibly with the help of an explicit spending path. Structural reforms, such as introducing regional minimum wages, continue to be necessary for better balanced growth.”
OECD estimates that Turkey’s gross domestic product growth will see 6.5 percent this year with a current account deficit to rise further, to 8.9 percent of GDP by 2012.
BUSINESS TURKEY TODAY
