Minister Simsek: “We will continue our predictable and rule-based policies until a permanent decrease in inflation and current account deficit and macrofinancial stability is achieved, thus strengthening the basis of sustainable high growth.”
Minister of Treasury and Finance Mehmet Simsek, regarding the 5.9% growth figure recorded in Turkiye in the third quarter of this year, “We will continue our predictable and rule-based policies until a permanent decline in inflation and current account deficit and macrofinancial stability is achieved, thus strengthening the basis of sustainable high growth.”
In his written statement, Simsek evaluated the growth figures for the third quarter of this year announced by TÜİK.
Pointing out that while the Turkish economy grew by 5.9% in the third quarter of the year compared to the same period of the previous year, the seasonally adjusted gross domestic product (GDP) growth was 0.3% compared to the previous quarter, Simsek stated that the growth in 9 months was 4.7% annually.
Simsek pointed out that the annualized national income increased to 1 trillion 76 billion dollars as of the third quarter and made the following evaluation:
“We have seen the positive effects of the disinflation program we implemented on the financial markets. Investor confidence increased, our country’s risk premium decreased, international capital inflow started, our reserves strengthened and exchange rate volatility decreased. We are moving towards a more balanced composition in growth within the prediction of our program. Compared to the first half of the year, the contribution of domestic demand to growth decreased from 8.8 points to 8.5 points, while the negative contribution of net external demand decreased from 4.9 points to negative 2.6 points. While private consumption decreased compared to the previous quarter, investment and exports increased.”
Simsek informed that as a result of the policies implemented for balancing, an annual improvement of 8.6 billion dollars was achieved in the current account deficit in September compared to May, and emphasized that the foreign trade data for October and November showed that the improvement in the current account deficit would continue.
“THE DECLINE IN UNEMPLOYMENT CONTINUED”
Simsek stated that they strongly support investments in the production of high-tech products, exporters’ access to finance and service exports in order to balance growth, reduce foreign dependency and permanently reduce the current account deficit.
“In this context, we implemented the Investment Committed Advance Loan Program with a volume of 300 billion liras. We increased Eximbank’s capital and increased the daily rediscount credit limit by 10 times to 3 billion liras. Finally, the regulation increasing the income exemption provided for income from service exports is being discussed in our Supreme Parliament. The positive outlook in labor markets continues. The increase in employment and the decrease in the unemployment rate continued in the third quarter. In September, the seasonally adjusted unemployment rate fell to 9.1%, its lowest level since December 2013. We will continue our predictable and rule-based policies until a permanent decline in inflation and current account deficit and macrofinancial stability are achieved. Thus, we will strengthen the foundation of sustainable high growth.”
Source: Patronlardunyasi / Prepared by Irem Yildiz