Turkey to see up to 6% growth in 1Q: Finance minister

Turkey to see up to 6% growth in 1Q: Finance minister

Turkey to see up to 6% growth in 1Q: Finance minister

Turkish Finance Minister Lütfi Elvan said on May 6 he expects Turkey to see 5.5%-6% growth in the first quarter, double-digit growth in the second quarter with the base effect and above 5% growth throughout the year. 

In a television interview, Elvan said economic activity revived in the first quarter of 2021, especially in the industrial sector, and production and trade are now in a better state than during the pre-crisis period.

Industrial and agricultural sectors are performing well in terms of production, he said, noting that Turkey entered 2021 strongly thanks to the measures taken in this period.

He also pointed out that strong growth is expected on a global scale starting from this year and nearly half of the Turkish economy’s growth will come from foreign trade in 2021.

Stating that the export performance in the first quarter was also very good, Elvan said: "When the euro zone grows by 1 unit, our exports increase by 4-4.5 units. There is a growth forecast of 4.4% for the growth of the euro area."

He said the growth in exports is expected to increase by 16%-20%, noting it is likely to reach $200 billion worth of exports for the first time in the country’s history.

He pointed out that countries will now turn to regional supply chains due to the difficulties they are experiencing amid the coronavirus pandemic.

"Turkey's strategic location, qualified human infrastructure, young dynamic population, as well as having a Customs Union agreement with the EU offers a very serious advantage."

He stressed that the year 2021 will be a year of growth in which price stability is especially observed, nominal demand is managed successfully, and “our structural reforms are supported.”

Inflation number one priority

Pointing out the importance of combating inflation in terms of achieving macroeconomic stability, Elvan said it is the number one priority in terms of economy management.

"You cannot solve this problem only with monetary policy. In the field of public finance, we have been giving the necessary support to our Central Bank, especially in price stability, since the day I took office."