Turkish President Reveals Medium-Term Economic Program
Turkish President Recep Tayyip Erdogan revealed aspects of the medium-term economic program that his government has prepared for the coming period.
“In line with our goal of making Turkey stronger, safer and more prosperous, we are presenting our first roadmap for the economy through a medium-term program,” Erdogan said in a speech at the presidential complex in the capital Ankara.
He added: “We believe that through this economic program, which we will follow, we will enter the group of countries with high income.”
Economic Growth and Exports
The President indicated that his country was aiming to balance economic growth, led by high-value-added private sector investment, at an average rate of 4.5 percent within three years.
He continued: “We will not give up on economic growth in our medium-term program,” adding, “We will increase exports of goods and services to historic levels.”
He explained that his country’s priority is “repairing the devastation caused by the earthquake, increasing employment opportunities with balanced economic growth, bringing inflation down to single digits, and improving income distribution.”
He noted that the foreign exchange reserves of the Central Bank of Turkey amount to $117.3 billion.
Main Goals of the Program
The plan has four main goals:
- Healing wounds from natural disasters (earthquakes).
- Ensure overall stability.
- Decrease in inflation to single digits (below 10%).
- Continued growth and employment, and the achievement of social justice.
Main Policy Instruments
In the medium term, there will be three main policy instruments:
Ensure fiscal discipline (with the exception of earthquake-related spending), monetary policy, and structural transitions.
– We expect a tangible impact on structural reforms in the medium term and aim to improve expectations in the short term.