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ECONOMICS > Turkey needs 6 pct growth: Çağlayan

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Turkey has to grow 5-6 percent annually, says Çağlayan, contesting the government’s recently announced 4 percent target for 2013. He calls for lower interest for growth. DAILY NEWS photo, Selahattin SÖNMEZ

Turkey has to grow 5-6 percent annually, says Çağlayan, contesting the government’s recently announced 4 percent target for 2013. He calls for lower interest for growth. DAILY NEWS photo, Selahattin SÖNMEZ

The Turkish economy needs to grow 5-6 percent every year to achieve the government’s 2023 goals, Economy Minister Zafer Çağlayan said yesterday in his speech at a meeting titled “Looking at Turkey’s economy from Ankara,” organized by daily Hürriyet. “You should not be demoralized because of the 3.2 percent growth rate target [for this year],” he said.

“Turkey has industrialists who think that even this growth rate is not enough. We have increased the exports volume by 12 percent despite all the troubles. I say Turkey should not put on the brakes given the exports increase. It would be wrong to compare Turkey’s performance only with Europe,” Çağlayan said.

Turkey should reduce the interest rate as current policies will always hinder the country’s growth, according to him, who is known to be an advocate of faster growth and often calls for lower interest rates.

October/11/2012

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Fr Grey

10/12/2012 1:53:47 PM

(Cont'd) The last problem Turkey should avoid is: low currency rate. Low currency rate is good for export, reducing the trade deficit. But it seems that Turkey has addicted to this, and cannot divorce with it. It is poison. Once the western world notices that Turkey has great benefit from low currency rate, they can attack Turkey by raising TL. At that time, letting TL rise against USD will be much more damaging than now.

Fr Grey

10/12/2012 1:40:30 PM

The economy will grow by itself, if education level is kept going up. 5-6% is the limit for a society, otherwise, many victims (who cannot catch up with the growth) will be created. US is on the top, so? If Turkey can keep 5-6% for 10 years, it is excellent. No country can do this without creating serious problems. The problems to be avoided are: (1) high debt, (2) unreasonably high property price. US & Japan are suffering from high debt. China & Hong Kong are from property price. Will continue.

Red Tail

10/11/2012 10:00:12 PM

The goal is to become the 10th biggest economy. Today the 10th biggest is Canada, with a GDP which is twice as high as Turkey. 5-6% per year is not enough to catch up. With regular high school mathematics a school kid can do the maths and see that with 5-6% growth, Turkey will not be the 10th biggest economy 2023.

Fr Grey

10/11/2012 8:12:10 AM

Lowering the interest rate will only increase inflation. Property price will increase, and cause instability of Turkey. USA is an example. All companies should learn how to survive the cost of borrowing money, instead of relying on the monetary policy. Turkey needs 6% growth, but inflation rate must be reduced to 3%. So, we have 3% net.
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