CHP deputy calls Turkey’s medium-term economic program ‘artificial’

CHP deputy calls Turkey’s medium-term economic program ‘artificial’

CHP deputy calls Turkey’s medium-term economic program ‘artificial’

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Turkey’s new medium-term economic program is artificial, a Republican People’s Party (CHP) deputy has said, claiming that the country was assuming it was not affected any global developments with its new program.

CHP İzmir deputy Selin Sayek Böke has said the new medium-term economic program, which was announced on Jan. 11 by the government, was far from realistic and inconsistent.

“While U.S. Federal Reserve’s interest policies,  the economic slowdown in China, global financial turbulences, weakening global demand and trade, presidential elections in the U.S. and geopolitical risks are regarded as risks for the world, these are not regarded as such in Turkey. In short, [the government is saying] “We are from different worlds,” Böke said at a meeting with economic reporters on Jan. 14.

Böke also said there were assumptions in the program such as the stimulation of domestic consumption, low inflation and the decrease of the current account deficit.

“As an economist, I also expect these super-three to be realized,” she commented.

“The unemployment would, however, not decrease without increasing the growth to five percent,” Böke said, adding that the forecast of a 4.5 percent growth was overly optimistic.

Böke had previously called the new medium-term economic program as “not serious,” and lacking the quality to provide a roadmap for Turkey because of its assumptions.

Turkish Deputy Prime Minister Mehmet Şimşek announced that the government had raised 2016’s GDP forecast to 4.5 percent from 4 percent, adding that annual GDP expansion would reach 5 percent in both 2017 and 2018.

The inflation forecast was also increased by 1 point to 7.5 percent for 2016 compared to the previous forecast. The forecast for 2017 had also been revised up from 5.5 to 6 percent, although the 2018 forecast has been kept the same at 5 percent, equal to the government’s target. 

The inflation rate, meanwhile, increased to 8.81 percent in 2015 amid a persistent rise in food prices and a significant loss in the Turkish Lira’s value against the dollar, valued at over 20 percent.