Finance Minister Albayrak projects single-digit inflation
“What does this mean? The interest rates will drop similarly. Lower interest rates mean easier financing for the business world, which will strengthen their investments. We will take stronger steps from now on, our path is clear.”
Turkey saw an annual hike of 18.71 percent in consumer prices in May, the Turkish Statistics Institute (TÜİK) reported on June 3.
Albayrak said the Turkish economy has come a long way in the last six years, arguing that the Gezi protests in 2013, followed by the Dec. 17-25, 2013 graft probes and the failed coup attempt in 2016 took their toll on the economy.
Albayrak also said a chronic economic problem - current account deficit - may soon be over.
“We always hear, what is current account deficit?” Albayrak said.
“Current account deficit is the difference between what your economy produced and what it consumed. So, if you consume more than you produce, you need money from abroad, you need to find financing. As of May last year, Turkey’s current account deficit was $58 billion. At this point, hopefully, as of June, the Turkish economy will have current account surplus for the first time in the 17 years of the AK Party [ruling Justice and Development Party] era. The winter months were the worst [for the economy], and now they are behind us.”
“Inflation and interest rates, these are the last [remaining problems],” he said.