Turkish economy shows good budget performance in 2013
Figures show Turkey has been successful in 2013, in terms of budget performance and the administration has done fairly well at maintaining growth, as well.
The main weakness of the government has been managing to create enough employment and it can be said it has definitely failed in decreasing current account deficit, which is the chronic disease of the economy.
As the growth is based on goods and services productions, it is dependent on imported input. As exports lag behind imports, the foreign trade gap has widened. The current account deficit of the first nine months totaled 8 percent of national income.
As the growth is based on goods and services productions, it is dependent on imported input. As exports lag behind imports, the foreign trade gap has widened. The current account deficit of the first nine months totaled 8 percent of national income.
As we are approach the end of the year, the report card grades of the Turkish economy have started to become obvious. The government gets a “B” on growth for approaching its target, but it deserved an “A” on the budget because it didn’t break discipline. However, growth couldn’t create enough employment and the government got a “D” for the fight against unemployment. It also got an “F” for the current account deficit because of its chronic failure on the matter.
The economy grew 4.4 percent in the third quarter. The growth rate was 4 percent in the first nine months. The last quarter (October-December) will be announced by the end of March 2014. The annual growth for 2013 is expected at around 3.5 percent. What was the target? It was 4 percent. So, the economy will grow a little lower than the target. The administration deserved to get a “B” in that class.
However, the growth is based on domestic markets like it was in the past. This growth, which hasn’t resulted in foreign exchange but results in spending on foreign exchange, widened the current account deficit to 8 percent with a two-point rise from last year. While the national income was $584 billion in the first nine months of 2012, it was $620 billion in the same period this year. The current account deficit rose from $35.7 billion in the first nine months of 2012 to $49 billion in the same period of this year. As growth rose, the foreign exchange gap also rose. Because the growth is based on goods and services productions, it means it is dependent on imported input. As exports lag behind imports, the foreign trade gap has widened. The current account deficit of the first nine months ($49 billion) totaled 8 percent of national income ($620 billion), giving it a grad of “F.”
21.12.2013
SOURCE: MEDIA